WALTHAM, MA; CLEVELAND, OH. - September 20, 2006 - The second-quarter update of the Global Insight/National City Housing Valuation Analysis released today shows 40 percent of the top 317 metro housing markets are extremely overvalued and at risk for a future price correction. Markets identified in the study as extremely overvalued increased to 79, from 68 in the first quarter. Despite a notable slow down in appreciation during the second quarter, Naples, Fla., remains the most overvalued market in the country, with an overvaluation of 101.5 percent. It is followed by Bend, Ore., (89.3 percent); Salinas, Calif., (79.4 percent); Merced, Calif., (78.4 percent); and Madera, Calif., (76.9 percent).

However, while overvalued metro areas remain numerous, 67 showed price declines. In other metro areas, the analysis revealed a considerable reversal in the rate of price appreciation, most notably in markets previously identified as the most overvalued. Sixty-nine percent, or 219 metro areas, saw a decline in the rate of price appreciation during the second quarter.

"Significant slower appreciation, or outright declines, among overvalued markets are a signal that we are in the early stages of a correction," said Richard DeKaser, chief economist at National City Corporation (NYSE: NCC). "This rebalancing may still be a gradual one, without widely spread price declines. But since there remains such a large degree of overvaluation, we suspect this process is only just beginning."

Among the markets showing the most rapid appreciation in the past five years, California, Florida, and parts of the Northeast are now showing the fastest decline in appreciation rates. Naples, Fla., for example, identified last year as the most overvalued market in the country, posted the largest decline, from a 58 percent gain in the second quarter of 2005 to just a 3.9 percent increase one year later. Additionally, the Midwest exhibited the highest concentration of falling housing prices. Though largely exempt from the housing boom, a weakening economy has turned modest gains into losses.

"As we observe slower or declining price appreciation rates in some of the most overvalued markets of the last few years, prices continue to appreciate at faster rates in metro areas that didn't join the market boom until much later in the cycle," said Jeannine Cataldi, Senior Economist at Global Insight. "This latter group, which includes the interior and northern parts of the western U.S., continues to show persistently strong appreciation rates, a possible indication that the housing market correction will take some time to play itself out across the country."

The Global Insight/National City Housing Valuation Analysis examines the top 317 U.S. real estate markets, or 84 percent of the single family housing market, to determine what home prices should be, controlling for differences in population density, relative income levels, interest rates, and historically observed market premiums or discounts. Markets with valuation premiums above 34 percent were deemed at risk for price corrections based on the typical degree of overvaluation that preceded the 63 known local market price declines observed since 1985.

The Global Insight/National City Housing Valuation Analysis is a joint venture that combines a statistical model originally developed at National City Corporation with data largely developed at Global Insight. More information is available at www.globalinsight.com/housingvaluation or www.nationalcity.com/economics.

Contacts:
Jeannine Cataldi, Senior Economist and Manager of Real Estate Service, Global Insight, +1 (610) 490-2650
jeannine.cataldi@globalinsight.com

Tom Tennant, National City Media Relations, +1 (216) 222-2855
Thomas.Tennant@NationalCity.com

Jim Dorsey, Global Insight Media Relations,+1 (781) 301-9069
jim.dorsey@globalinsight.com

About National City Corporation
National City Corporation (NYSE: NCC), headquartered in Cleveland, Ohio, is one of the nation's largest financial holding companies. The company operates through an extensive banking network primarily in Ohio, Illinois, Indiana, Kentucky, Michigan, Missouri and Pennsylvania, and also serves customers in selected markets nationally. Its core businesses include commercial and retail banking, mortgage financing and servicing, consumer finance and asset management. For more information about National City, visit the company's Web site at www.NationalCity.com.

About Global Insight
Global Insight, Inc. (http://www.globalinsight.com/) is a privately held company that brought together the two most respected economic information companies in the world, DRI and WEFA. Global Insight provides the most comprehensive economic and financial information available on countries, regions, and industries, using a unique combination of expertise, models, data, and software within a common analytical framework to support planning and decision-making. Through the world's first same-day analysis and risk assessment service, Global Insight provides immediate insightful analysis of market conditions and key events around the world, covering economic, political, and operational factors. The company has over 3,800 clients in industry, finance, and government with revenues in excess of $80 million, over 600 employees, and 23 offices in 13 countries covering North and South America, Europe, Africa, the Middle East, and Asia.