Housing 21% Undervalued Compared to Disposable Income, Researchers Say

Research firm Capital Economics released a study showing that in the fourth quarter of 2010, residential real estate was undervalued to the tune of 21% when comparing the Case-Schiller home price index to disposable income per capita.

The firm said its research suggests that “housing is exceptionally undervalued”.

Among data points cited are a record low initial monthly mortgage payments compared to median income, a continuing decline in mortgage rates, and fewwer homes in the foreclosure pipeline.

See the full article here: http://www.dsnews.com/articles/research-firm-says-us-housing-has-never-been-this-undervalued-2011-03-07

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