CNN Reports on Housing Bubble Markups
CNN posted a report on the most overvalued housing markets in the U.S. Their study found that 65 of the 299 largest real estate markets were overpriced. The Housing Market Analysis was conducted by the National City Corp, a financial holding company. The report named Naples, Florida as the most overpriced and overvalued. Undervalued markets included College Station and Killeen in Texas.
Las Vegas ranked 47th on the list of the 65 overpriced markets followed by Kingston, New York and the Washington, DC-VA-MD-WV area. Estimating the typical house in the local market and comparing it to the median price of what houses are selling for is part of the process that National City Corp used to arrive at these rankings. The city’s population density, the local interest rates and local income levels are all factored into the equation along with historical premiums or discounts available.
The markets with the highest markups also appeared to be those that have experienced the real estate boom.
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