Survey Finds West Coast Home To Most Overvalued Housing Markets
SAN FRANCISCO (CBS SF) – The chief economist for real estate tracking firm Trulia reports that nine of the ten most overheated major housing markets are in California or Hawaii.
In his Bubble Watch blog post, Jed Kolko writes that while prices among the top 100 markets are 3% undervalued nationally, that’s not the case in most California markets. All three Bay Area Cities included in the survey, San Jose (6th most overvalued), Oakland (7th) and San Francisco (10th). The value determination is found by comparing current prices with historic values, income and rents.
Orange County (17%), Honolulu (15%) and Los Angeles (15%) were found to be the most overvalued. Even so, Kolko points out that the degree to which homes are overpriced is nowhere near what we saw during the bubble nearly a decade ago when homes were up to 70 percent overvalued relative to fundamentals. In all, 24 of 100 markets are currently overvalued, according to Trulia analysis.
Akron, Ohio, along with Cleveland and Detroit are the best places to get a deal on a home.