I Want What They Are Smoking

IHS Global Insight is saying that the nation’s housing market is undervalued:

A new report released today by IHS Global Insight and PNC Financial Services Group revealed that the nation’s housing market as a whole is “slightly undervalued,” but said there was no sign of a bottom.

The so-called “House Prices in America” fourth quarter update found that home prices had fallen a collective 9.9 percent from their 2007 peak, although much more in sand states like California and Florida.

About the only thing that I can figure is that they are thinking that the dollar figures are Zimbabwean dollars of something.

Housing is still well above historical trends in terms of absolute price, rent/own ratio, and relative to wages.