Today’s news said that home prices have dropped again according to third quarter statistics.  The good news is, that means we are one step closer to a turnaround (I still predict that Spring 2008 will signal the start of the upturn).  Overall, the price declines now means that homes in many areas are closer to their fair valuations.  One year ago, 63 metro areas in the U.S. were categorized as “extremely overvalued”.  Last quarter, 48 metro areas were in that category.  Now, only 38 metro areas get that distinction.  Prices will continue to fall in these areas which for the most part are centered in Oregon, California, Arizona, and Florida.  However, a good portion of the country’s metro areas are now categorized as “fairly valued”.  In fact, there are actually areas in the South and Midwest that get the favorable label of being called “undervalued”.  The best markets in the country are Houston and Dallas.  If you are in the market to buy a retirement, second or vacation home now, look at the lakes region of north/central Texas and the Texas gulfcoast for the best deals!

Don’t forget, on January 1st of 2008, the first of 78 million Baby Boomers turn 62 years old and qualify for early Social Security benefits.  This is GREAT news for anyone that is involved in the second home real estate market!