According to Trulia’s chief economist, U.S. home prices were 2 percent undervalued in the fourth quarter of 2014. But the most overvalued market in the country is now Austin, at 16 percent overvalue, followed by Orange County and Los Angeles in southern California. Nine of the 100 largest metro areas are 10 percent or more overvalued.
Competition for prime assets in Europe’s major real estate markets is leading investors to continue their move into secondary assets and recovering markets, according to Emerging Trends in Real Estate Europe 2015, a forecast published jointly by ULI and PwC.
The Real Estate Roundtable released the results of its fourth-quarter 2014 Sentiment Survey. Topline findings included the following: increases in interest rates are likely to play out more slowly than expected, equity and debt capital for real estate is widely available, and return expectations have been dialed down by some investors who feel we are nearing the top of the current cycle.