Global Insight: Home Prices Off 5.1% in 4Q

Meanwhile, an analysis released by Global Insight Inc., Waltham, Mass., found that single-family home prices fell at "a precipitous 5.1% annualized rate" in the fourth quarter. The quarterly housing valuation analysis, House Prices in America, looked at the top 330 U.S. real estate markets and found that the number of metropolitan areas deemed overvalued had fallen to 21 from the peak of 58 in 2006. The company said the most highly concentrated declines came in California, Florida, and Michigan, and the most "stubbornly overvalued" areas included Bend and Portland, Ore.; Miami; Honolulu; and Riverside-San Bernardino, Calif. "Overvaluation is being dissipated quickly across U.S. metropolitan areas, though tight credit market conditions will continue to hamper real estate markets throughout 2008," said James Diffley, group managing director of Global Insight's Regional Services Group. The analysis is a joint effort of Global Insight and National City Corp., Cleveland. More information can be found online at http://www.globalinsight.com/housingvaluation and http://www.nationalcity.com/housevaluation.