Housing: Best Time to Buy in Four Years

It may be the best time to buy a house in more than four years.

According to a report released recently by Cleveland-based bank National City Corp., together with financial analysis firm Global Insight, revealed that more than 88% of the 330 housing markets surveyed showed price declines and improved affordability during the last three months of 2007.

Home prices have dropped so quickly and so far that valuations – the difference between what a home should cost and its actual price – are the lowest they’ve been since 2004.

Price declines have continued into 2008 and interest rates, although they have inched up lately, have been steady or lower compared to late last year.

There are still 21 housing markets, or 6% of those surveyed, that are severely over valued.  That’s down from 56 overvalued markets at the peak of the housing bubble in 2006.

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