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Most overvalued housing markets

johnnydr87

By johnnydr87
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johnnydr87 Burg

johnnydr87

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Most overvalued housing markets

Latest analysis of 299 markets: See how your hometown ranks.

By Les Christie, CNNMoney.com staff writer

January 3, 2006: 2:33 AM EST

NEW YORK (CNNMoney.com) - Sixty-five of the nation's 299 biggest real estate markets are severely overpriced and subject to possible price corrections.

That's according to the latest (third quarter) Housing Market Analysis conducted by National City Corp, a financial holding company, in conjunction with Global Insight, a financial information provider.

The report named Naples, Florida as the most overvalued of all housing markets in the United States. A single-family, median-priced home there sells for $329,970, 84 percent more than what it should cost -- $180,956 -- according to the analysis.

Full article

How did metros in your state rank?

Fayettville, AR: +11%

Little Rock, AR: -6%

Fort Smith, AR: -8%

It's not necessarily bad or good to have overvalued or undervalued housing markets. It really depends on how you look at it. Fayetteville is booming and one of the fastest growing regions in the nation.....Little Rock is a more mature market.

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EastSideResider Whistle-Stop

EastSideResider

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Charlotte, NC-SC -6%

^^It's pretty cheap to live here in Charlotte....

It's pretty cheap to live in NC too.....

North Carolina

Virginia Beach, VA-NC +29% (<-- not fully NC)

Wilmington, NC +25%

Asheville, NC +24%

Hickory, NC +6% (<-- Surprising)

Durham, NC +2%

Burlington, NC 0%

Winston-Salem, NC -1%

Greensboro, NC -2%

Raleigh, NC -3%

Greenville, NC -4%

Rocky Mount, NC -5%

Charlotte, NC-SC -6% (<-- cheapest out of those NC cities listed)

South Carolina

Columbia, SC +1%

Greenville, SC 0%

Spartanburg, SC -1%

Florence, SC -1%

Augusta, GA-SC -2% (<-- not fully SC)

Charlotte, NC-SC -6%

Charleston, SC -7%

Texas cities really surprised me... I thought they would be higher than they were....

California and Florida at the top.... not surpising...

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Charleston native Burg

Charleston native

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Wow, I would have thought that Columbia and Charleston would occupy each other's spots on the list.

So did I...I never imagined that Chas real estate prices were 7% undervalued. Cola is only 1%, so it's not a large amount of overpricing. Just goes to show that the hot real estate is along the coast. It will only be a matter of time before Chas percentage gets up to positive values.

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CorgiMatt Town

CorgiMatt

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So did I...I never imagined that Chas real estate prices were 7% undervalued. Cola is only 1%, so it's not a large amount of overpricing. Just goes to show that the hot real estate is along the coast. It will only be a matter of time before Chas percentage gets up to positive values.

An article on the front page of the Post and Courier today says that Charleston SC was mixed up with Chalreston WV in the real estate article.

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Lady Celeste Burg

Lady Celeste

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I would think that being too high is NOT a good thing. I think it would behoove most cities to keep prices within 10 points of zero....either positive or negative. The only exceptions I could see would be locales in southern Florida or coastal cities like Tampa and tourist/vacation cities like Orlando. The only other exceptions I can think of outside the southeast are certain markets of California, Phoenix, Las Vegas and metro New York City. If you are not one these areas then you should have a much higher positive job growth with wages keeping up with these increase or overvalues.

If a person buying a $8,250,000 home/condo in Naples Florida, Boca Raton or Miami or buying a $12,000,000 10 room coop in New York City or a $25,000,000 Montecito, California mansion then they are definitely not worrying out how the job market is working out. Cities in south Florida, California and other desirable, unique markets like Orlando and Las Vegas will always benefit from being second home markets or places where the rich go to live. My concern would be say...and this is a made up city and state....Bumblebee, MP where the home prices are +35 percent overvalued. There are relative few high paying long term jobs or industry. If your median income is $35,000, who is going to sustain those median home prices of $302,000?

Again, there are certain premium markets that will always be high.

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Charleston native Burg

Charleston native

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Here's the article that CorgiMatt was referring to. The city's own paper, Post & Courier, had to investigate the study themselves and found that the values for Charleston, WV had been inadvertantly switched with values for Charleston, SC. Yes, ladies and gentleman, Chas real estate prices are insanely high with the values being 28% higher than what they should be. Again, it shows how hot the market is there. I just wish it wasn't THAT hot.
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MikesLogic Whistle-Stop

MikesLogic

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One thing that isn't touched on is the fact that so many million dollar homes are for sale in the Charleston region, that inflates the average big time. One house alone in Kiawah is selling for around 10 million dollars? There isn't a house on Sullivans Island selling for less than a million dollars.

The suburbs outside of all that influence are not bad at all, I've seen new developments going up with nice sized houses in the 110,000 range all over the burbs. Which is about on par with the rest of the state. The peninsula, immediate surrounding areas and islands is where the overvaluation occurs. Then again it's only overvalued because of the median income but most of the people buying these high dollar items are not locals as has been mentioned before.

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Charleston native Burg

Charleston native

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One thing that isn't touched on is the fact that so many million dollar homes are for sale in the Charleston region, that inflates the average big time. One house alone in Kiawah is selling for around 10 million dollars? There isn't a house on Sullivans Island selling for less than a million dollars.

The suburbs outside of all that influence are not bad at all, I've seen new developments going up with nice sized houses in the 110,000 range all over the burbs. Which is about on par with the rest of the state. The peninsula, immediate surrounding areas and islands is where the overvaluation occurs. Then again it's only overvalued because of the median income but most of the people buying these high dollar items are not locals as has been mentioned before.

That is a good point, Mike. The homes built on IOP, Sullivan's Island, Kiawah, Seabrook, and even Edisto Island along with the historic mansions of the lower DT area will skew the percentage to a higher amount. However, some neighborhoods West Ashley and East Cooper are a little overvalued merely because of their proximity to waterways, beaches, and the historic district.

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Jerseyman4 Burg

Jerseyman4

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Up in Summerville & Moncks Corner, how does the real estate market affair up there in real estate value comparison to Mt Pleasant and the areas in West Ashley near the US 17 & SC 30 bridges?

I ask this because ive noticed A LOT of development on maps and driving around the area, is it because its a lot cheaper to live out there than near the coast/DT Chas.?

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knightrider162 Whistle-Stop

knightrider162

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Up in Summerville & Moncks Corner, how does the real estate market affair up there in real estate value comparison to Mt Pleasant and the areas in West Ashley near the US 17 & SC 30 bridges?

I ask this because ive noticed A LOT of development on maps and driving around the area, is it because its a lot cheaper to live out there than near the coast/DT Chas.?

Well were I am in Goose Creek the average new home price is 169,300 ( 2004 www.city-data.com)

Summerville 137,400

Moncks Corner 90,600

It is not incredibly cheaper in the area around Goose Creek and Summerville but it does drop of a bit in Moncks Corner

Charleston(29401 pop. 11,250 lower DT) :

  • $70,000 to $79,999: 9

  • $90,000 to $99,999: 13

  • $100,000 to $124,999: 12

  • $125,000 to $149,999: 25

  • $150,000 to $174,999: 37

  • $175,000 to $199,999: 27

  • $200,000 to $249,999: 106

  • $250,000 to $299,999: 95

  • $300,000 to $399,999: 206

  • $400,000 to $499,999: 191

  • $500,000 to $749,999: 429

  • $750,000 to $999,999: 275

  • $1,000,000 or more: 278

Goose Creek(29445 urban-47,483 rur-1,145):

  • $15,000 to $19,999: 17

  • $20,000 to $24,999: 18

  • $30,000 to $34,999: 20

  • $35,000 to $39,999: 38

  • $40,000 to $49,999: 369

  • $50,000 to $59,999: 753

  • $60,000 to $69,999: 1121

  • $70,000 to $79,999: 863

  • $80,000 to $89,999: 996

  • $90,000 to $99,999: 1049

  • $100,000 to $124,999: 1452

  • $125,000 to $149,999: 991

  • $150,000 to $174,999: 659

  • $175,000 to $199,999: 336

  • $200,000 to $249,999: 170

  • $250,000 to $299,999: 73

  • $300,000 to $399,999: 73

  • $400,000 to $499,999: 15

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Aporkalypse City

Aporkalypse

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Houston, TX -14%

Fort Worth, TX -15%

Beaumont, TX -15%

Dallas, TX -16%

Killeen, TX -16%

El Paso, TX -18%

College Station, TX -23%

i think it could be the climate

There's a whole lot of land in Texas. Combined with cheap labor and recovery from a real estate bubble that burst when the NASDAQ did in DFW and that's largely the explanation. Your money goes as far in DFW and Houston as it does in the nation's average rural area, they're just very reasonable places to live.

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