Which are the most overvalued housing markets in the US?

By contrast, homebuyers in Baltimore, Maryland, pay the smallest premiums—an average of just 2.6%. The other two lowest premiums, according to the study, were Honolulu, Hawaii, at 2.9%, and New York City, New York, at 3.6%.

The top 10 most overvalued housing markets in the US were as follows: Boise, Idaho (73%); Austin, Texas (68%); Ogden, Utah (65%); Las Vegas, Nevada (61%); Atlanta, Georgia (58%); Phoenix, Arizona (58%); Provo, Utah (57%); Fort Meyers, Florida (56%); Spokane, Washington (56%); and Salt Lake City, Utah (56%).

Are home prices rising across the US?

Across the US, mortgage rates rose almost three-fourths of a percentage higher than they were at the beginning of 2021. Home prices, meanwhile, increased by 18.8% annually by the end of 2021. Those figures indicate that it is harder than ever to find affordable housing in the US. Some markets, however, are much harder to find an affordable home in than others.

As mentioned, Boise, Idaho, is at the top of the list for the market with the most overvalued homes. Two other centers have also made significant leaps during the same time period. Las Vegas, Nevada, jumped from number seven to number four over a two-month period, with premiums surging another 6%. Atlanta, Georgia, went from 10th to fifth over two months, with an increase of 7% in premiums.

Where are house prices in the US headed next?

The housing market has already become unaffordable for most Americans, with mortgage rates on the rise and house prices nearly 20% higher than they were about this time last year. Real estate experts predict that more potential homebuyers will sit this stretch out and wait for the white-hot market to cool a little leading to an eventual slowdown. “If we’re not at the peak of the current housing cycle, we’re awfully close,” Ken H. Johnson, an economist at Florida Atlantic University, said in a news release earlier this summer.