With a record number of properties for sale at overinflated prices are we moving towards a buyers market?
Many of the real estate investors and speculators have pulled out of the market and are taking a wait-and-see attitude which has put a damper on home sales and allowed the market to become saturated with a record number of homes for sale.
Sixty-five of the nation's 299 biggest real estate markets are severely overpriced and subject to sigificant price corrections in 2007.

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That's according to the latest (third quarter) Housing Market Analysis conducted by National City Corp, a financial holding company, in conjunction with Global Insight, a financial information provider.

The report named Naples, Florida as the most overvalued of all housing markets in the United States. A single-family, median-priced home there sells for $329,970.00 - 84 percent more than what it should cost -- $180,956.00 -- according to the analysis.

National City arrives at its estimates of what the typical house in these markets should cost by examining the town's population densities, local interest rates, and income levels. It also factors in historical premiums and discounts for each area.

Other markets deemed wildly overpriced included Merced, California (by 77 percent), Salinas, California (75 percent), and Port St. Lucie, Florida (72 percent).

Undervalued markets were College Station (-23 percent), El Paso (-18 percent), and Killeen (-16 percent), all in Texas. That state dominated the discounted markets list with nine of the 10 most undervalued housing markets. Montgomery, Alabama was No. 8 among the undervalued markets.

The data did produce some evidence of prices moderating, according to National City's chief economist, Richard DeKaser.

In Massachusetts, for example, one of the hottest of housing markets over the past few years, each of the seven housing markets analyzed was still overvalued. Prices, however, had fallen in all seven. That would indicate the state is trending back toward normal valuations.

The same could not be said of Florida. The Sunshine State had 15 different markets on the list of extremely overpriced metro areas and all 15 had grown more overpriced during the quarter.

Amidst all these hot and cold markets there were a few judged, like Goldilock's porridge, "just right." They included Albuquerque New Mexico, Dayton Ohio, and Omaha Nebraska. In all those towns actually selling prices closely tracked the expected values.
 
 
Metro area over/under-valued Metro area over/under-valued Metro area over/under-valued
Naples, FL 84% Eau Claire, WI 20% Erie, PA 2%
Merced, CA 77% Vineland, NJ 20% Columbia, MO 2%
Salinas, CA 75% Trenton, NJ 20% Columbus, OH 2%
Port St. Lucie, FL 72% Rockingham, NH 20% Harrisburg, PA 2%
Stockton, CA 72% Anchorage, AK 20% Kennewick, WA 2%
Madera, CA 70% Casper, WY 20% Provo, UT 2%
Santa Barbara, CA 70% Racine, WI 20% Lima, OH 1%
Modesto, CA 67% Battle Creek, MI 20% Utica, NY 1%
Napa, CA 65% Springfield, MA 19% Bowling Green, KY 1%
Riverside, CA 65% Detroit, MI 19% Hattiesburg, MS 1%
Medford, OR 64% Greeley, CO 19% Decatur, IL 1%
Sacramento, CA 61% Burlington, VT 18% Columbia, SC 1%
Atlantic City, NJ 59% Wilmington, DE-MD-NJ 18% Cincinnati, OH-KY-IN 1%
Chico, CA 59% Camden, NJ 18% Rochester, MN 0%
Fresno, CA 58% Boston, MA 18% Greenville, SC 0%
West Palm Beach, FL 57% Lansing, MI 18% Oshkosh, WI 0%
Redding, CA 56% Boulder, CO 18% Lawrence, KS 0%
Santa Rosa, CA 56% Michigan City, IN 17% Las Cruces, NM 0%
Bend, OR 56% Ann Arbor, MI 17% Omaha, NE-IA 0%
Sarasota, FL 56% York, PA 17% Appleton, WI 0%
Miami, FL 55% Milwaukee, WI 16% Albuquerque, NM 0%
Oxnard, CA 55% Madison, WI 16% Burlington, NC 0%
Vero Beach, FL 54% Philadelphia, PA 15% Ogden, UT 0%
Los Angeles, CA 54% Spokane, WA 15% Baton Rouge, LA 0%
Fort Lauderdale, FL 53% Warren, MI 15% Dayton, OH 0%
Vallejo, CA 53% Norwich, CT 15% Amarillo, TX 0%
San Luis Obispo, CA 53% Richmond, VA 15% Alexandria, LA 0%
Cape Coral, FL 52% Corvallis, OR 14% Kokomo, IN -1%
Bakersfield, CA 51% Grand Rapids, MI 14% Nashville, TN -1%
Palm Bay, FL 49% Muskegon, MI 14% Winston-Salem, NC -1%
Barnstable Town, MA 48% Lake-Kenosha, IL-WI 14% Spartanburg, SC -1%
Oakland, CA 47% Albany, NY 13% Florence, SC -1%
Ocean City, NJ 47% Allentown, PA-NJ 13% Birmingham, AL -1%
Prescott, AZ 46% Saginaw, MI 13% Sherman, TX -1%
Panama City, FL 46% Harrisonburg, VA 13% Jackson, MS -1%
San Diego, CA 46% La Crosse, WI-MN 13% Houma, LA -1%
Visalia, CA 45% Boise City, ID 13% Pittsburgh, PA -1%
San Jose, CA 44% Pittsfield, MA 13% Binghamton, NY -1%
Deltona, FL 44% Wenatchee, WA 13% Monroe, LA -2%
Santa Cruz, CA 44% Rockford, IL 13% Columbus, GA-AL -2%
Santa Ana, CA 44% Farmington, NM 13% Sioux Falls, SD -2%
Bellingham, WA 43% Cambridge, MA 12% Des Moines, IA -2%
Fort Walton Beach, FL 43% New Orleans, LA 12% Columbus, IN -2%
Nassau-Suffolk, NY 43% Janesville, WI 11% Lincoln, NE -2%
Poughkeepsie, NY 39% New Haven, CT 11% Mobile, AL -2%
Reno, NV 38% Gainesville, GA 11% Greensboro, NC -2%
Las Vegas, NV 38% Kalamazoo, MI 11% Albany, GA -2%
Kingston, NY 38% Roanoke, VA 11% Augusta, GA-SC -2%
Washington, DC-VA-MD-WV 37% Fayetteville, AR-MO 11% Raleigh, NC -3%
Bethesda, MD 36% Canton, OH 11% Owensboro, KY -3%
Providence, RI-MA 35% Lancaster, PA 10% Evansville, IN-KY -3%
San Francisco, CA 35% Colorado Springs, CO 10% Bloomington, IL -3%
St. George, UT 35% Denver, CO 10% Shreveport, LA -3%
Ocala, FL 35% Peoria, IL 10% Cedar Rapids, IA -3%
Phoenix, AZ 35% Reading, PA 10% Greenville, NC -4%
Portland, OR-WA 35% Fort Collins, CO 10% Syracuse, NY -4%
Eugene, OR 34% Waterloo, IA 9% South Bend, IN-MI -4%
Tampa, FL 34% Gary, IN 9% Indianapolis, IN -5%
Pensacola, FL 33% St. Louis, MO-IL 9% Springfield, IL -5%
Orlando, FL 33% Champaign, IL 9% Rocky Mount, NC -5%
Grand Junction, CO 31% Yakima, WA 9% Oklahoma City, OK -5%
Honolulu, HI 31% Dalton, GA 9% Jefferson City, MO -5%
Edison, NJ 31% Sheboygan, WI 9% Buffalo, NY -5%
Duluth, MN-WI 31% Toledo, OH 9% Fort Wayne, IN -5%
Jacksonville, FL 31% Green Bay, WI 8% Charlotte, NC-SC -6%
Virginia Beach, VA-NC 29% Springfield, OH 8% Warner Robins, GA -6%
Worcester, MA 29% Youngstown, OH-PA 8% Iowa City, IA -6%
Portland, ME 29% Lynchburg, VA 8% Decatur, AL -6%
Flagstaff, AZ 29% Davenport, IA-IL 7% Wichita, KS -6%
Essex County, MA 28% St. Joseph, MO-KS 7% Little Rock, AR -6%
Baltimore, MD 28% Mansfield, OH 7% Macon, GA -6%
Charlottesville, VA 28% Hickory, NC 6% Springfield, MO -6%
Charleston, WV 28% Fond du Lac, WI 6% Elkhart, IN -6%
Tucson, AZ 27% Cleveland, OH 6% Waco, TX -7%
Newark, NJ-PA 27% Bridgeport, CT 6% Charleston, SC -7%
New York, NY-NJ 27% Billings, MT 5% Midland, TX -7%
Monroe, MI 26% Chattanooga, TN-GA 5% Austin, TX -7%
Bay City, MI 26% Idaho Falls, ID 5% Lubbock, TX -7%
Flint, MI 26% Cheyenne, WY 5% Tyler, TX -7%
Olympia, WA 26% Pueblo, CO 5% Corpus Christi, TX -8%
Wilmington, NC 25% Dubuque, IA 4% Fort Smith, AR-OK -8%
Tacoma, WA 25% Topeka, KS 4% Tulsa, OK -9%
Salem, OR 25% Hartford, CT 4% Memphis, TN-MS-AR -9%
Minneapolis, MN-WI 24% Kansas City, MO-KS 4% Rochester, NY -9%
Asheville, NC 24% Akron, OH 4% San Angelo, TX -10%
Seattle, WA 24% Wausau, WI 4% Lafayette, IN -10%
Mount Vernon, WA 24% Salt Lake City, UT 4% Abilene, TX -11%
Jackson, MI 24% Scranton, PA 4% San Antonio, TX -11%
Longview, WA 24% Lexington, KY 4% Huntsville, AL -11%
Lakeland, FL 23% Bismarck, ND 4% Longview, TX -11%
Brunswick, GA 23% Athens, GA 3% Odessa, TX -12%
Gainesville, FL 23% Fargo, ND-MN 3% Montgomery, AL -12%
Manchester, NH 23% Sandusky, OH 3% Houston, TX -14%
Bremerton, WA 22% Knoxville, TN 3% Fort Worth, TX -15%
Tallahassee, FL 22% Bloomington, IN 3% Beaumont, TX -15%
Holland, MI 22% Anderson, IN 3% Dallas, TX -16%
Niles, MI 21% Lafayette, LA 3% Killeen, TX -16%
Savannah, GA 21% Louisville, KY-IN 3% El Paso, TX -18%
Santa Fe, NM 21% Durham, NC 2% College Station, TX -23%
Chicago, IL 21% Atlanta, GA 2%