That was fast. Way back in August, Charlottesville was one of the more “frothy” real estate markets, per USAToday.

Today they report:

Also noteworthy: A few cities previously deemed very frothy dropped off the list. Worcester and Essex County, Mass., are no longer 30% overvalued, a sign that cooling is underway in many previously red-hot markets. Also dropping off the overvalued list: Jackson, Miss.; Bay City, Mich.; Portland, Maine; and Charlottesville, Va. …

What remains to be seen, DeKaser says, is whether the most overvalued markets will have an orderly price correction to more normal, historic price levels — or more painful declines.

The study’s 30% threshold for seriously overvalued markets is based on the typical degree of frothiness that preceded 63 known price declines since 1985.

“The slower pace of appreciation suggests that a return to normal valuations lies ahead,” says Philip Hopkins, managing director of U.S. regional services at Global Insight.  (I have been saying this for months. -jd)

Is this news good, bad or indifferent?

Side note: my post in August, linked above and here, remains one of my better-researched posts.

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