Fifth-most-undervalued market: Cleveland
How much prices lag fundamentals:
20.5%

Home sellers in the Rock and Roll Hall of Fame's hometown are definitely singing the blues these days -- good news for would-be buyers.

Trulia estimates that Cleveland's home prices, which peaked at 21% above fair value in 2005, have fallen to 20.5% below where fundamentals suggest they should be.

But buyers beware: Kolko doesn't expect a turnaround anytime soon.

"We're not likely to see strong home-price appreciation in the Rust Belt areas in the foreseeable future because they still face big economic challenges," he says.

Still, Kolko says Cleveland consumers who are simply looking for places to live should feel free to jump into the market. That's because Trulia calculates that it's 63% cheaper to buy a Cleveland home than rent one as long as you stay in one place for seven years.

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