Home > Blogs > Scott Turner > Hello from Austin, Texas

Are you in the top 10 of the most overvalued housing markets?

By Scott Turner

Real Estate Agent with Turner Residential

September 25, 2006 12:47 PM

We are lucky here in Austin. We were on CNN just a few months back and gloating about how great and undervalued our property is! It opened up a flood of investors looking for a great deal in Austin. We tend to forget about the rest of the US. Some markets are not so lucky. Extremely overpriced homes are wreaking havoc on markets that were so popular just last year.

Money Magazine lists the most overvalued markets:

The 10 most overvalued housing markets, according to Global Insight and National City.

City	State	Median price	Percent overvalued
Naples	FL	$389,200	101.5%
Bend	OR	$296,700	89.3%
Salinas	CA	$618,400	79.4%
Merced	CA	$295,400	78.4%
Madera	CA	$311,000	76.9%
Port St. Lucie	FL	$240,800	74.0%
Stockton	CA	$346,600	73.9%
Santa Barbara	CA	$638,300	72.8%
Miami	FL	$292,800	70.8%
Punta Gorda	FL	$210,900	70.2%

I would have thought that some areas of Pennsylvania would be listed here. My brother just purchased a house that seemed to be extremely over priced, and said the market could support a price tag of that size. Austin did not make Money Magazine's undervalued list, but we did come close with Killeen, TX only about 25 miles away! Seven Texas cities made the list out of 10.

Near the bottom already...

The 10 most undervalued metro markets

City	State	Median price	Pecent undervalued
College Station	TX	$97,100	22.3%
Dallas	TX	$129,900	21.2%
Ft. Worth	TX	$107,500	19.3%
Houston	TX	$113,000	17.3%
McAllen	TX	$57,300	16.4%
Shreveport	LA	$97,100	15.2%
Killeen	TX	$94,200	14.9%
Wichita Falls	TX	$74,500	13.8%
Tulsa	OK	$98,100	12.3%
Monroe	LA	$90,800	11.8%

Comments(4)

Comment

Show All Comments

Sort:

Eric Bouler

Gardner Realtors, Licensed in La. - New Orleans, LA

Listening to your Needs

Maybe these areas have a lot of people without money. or dont spend it on homes. it most likley hadnt changed in several years.

Sep 25, 2006 05:41 PM

Timothy Butterworth

Taking a break - Portland, OR

I was surprised that Portland was not up on the top 10, Or at least Lake Oswego. The prices have been way out of range for some time here. Starter home are nearing $200k for rock bottom fixers now, it is sad. My dream house was about $400k 4 years ago and is now around $900k, at this rate I will never be able to afford it and the taxes.

Sep 25, 2006 06:32 PM

Jason Sardi

Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC

Your Agent for Life

Living here in eastern Pa, I will say that appreciation in some areas over a recent 2 years had been at the 40% mark. So, I will agree with you in the over-inflation here. Though, now the market has stabilized and things are getting back to reality.

Feb 24, 2007 05:09 AM

Ted Torres

N/A - Merced, CA

Yep! Number 4! I have been trying to find more recent data to see where the Merced, California market is. Can anyone help?

Apr 13, 2007 05:04 AM

Are you in the top 10 of the most overvalued housing markets?

Comments(4)

Scott Turner

Recent Posts

Additional Information