July’s market reports were very positive for the country on all fronts. More people are finding employment but more importantly, it seems our once crashed housing market is back in business. With positive reports coming in every month, it seems local housing is being criticized for going too fast. The most recent reports have the housing market at a 7% increase and building and construction permits showed an increase of 6%.
According to a study done by research real estate website, Trulia.com, Orange County has the highest overvalued housing in the entire country. The study rated Orange County homes to be around 12% more expensive than the current housing value. Not far behind Orange County was Los Angeles at 10% and Austin, TX at 9% overvalued.
In a statement from Trulia’s Chief Economist Jed Kolko and author of the report, Kolko explains that although Orange County and Los Angles Counties are the most overvalued in the current market, they are more true to a long term value.
While the local unemployment rates of these two counties decreases, there will be more opportunity for the housing to grow and balance out to the rates before the initial crash in 2006.