Phoenix Metro Homes Among Nation’s Most Overvalued, Study Finds

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The Phoenix housing market has become overpriced.

That’s according to a recent study from researchers at Florida Atlantic University and Florida International University.

The research found that homes in various metro areas are substantially overvalued with a low supply of houses on the market. It found that four U.S. housing markets are overvalued by more than 60%. Meanwhile, homes in another 11 markets are overvalued by 50% or more.

The research says that the Phoenix metro area ranks sixth nationally in terms of overvalued housing markets at 57.94%.

It says that at the end of April, the average home price in Phoenix was $466,170. This was much higher than the expected home price, which was under $300,000 ($295,164.60).

Home prices have increased rapidly in the Phoenix metro area. The average home price as of April 30, 2021, was $356,078. That means the average home price increased by more than $110,000 in a one-year span; it was a 30.9% increase in home values. Meanwhile, the expected home price only increased by about $10,000 in that stretch.

The economists who conducted the study don’t think this trend will continue.

https://arizonasuntimes.com/20...

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Quote from @Account Closed:

The Phoenix housing market has become overpriced.

That’s according to a recent study from researchers at Florida Atlantic University and Florida International University.

The research found that homes in various metro areas are substantially overvalued with a low supply of houses on the market. It found that four U.S. housing markets are overvalued by more than 60%. Meanwhile, homes in another 11 markets are overvalued by 50% or more.

The research says that the Phoenix metro area ranks sixth nationally in terms of overvalued housing markets at 57.94%.

It says that at the end of April, the average home price in Phoenix was $466,170. This was much higher than the expected home price, which was under $300,000 ($295,164.60).

Home prices have increased rapidly in the Phoenix metro area. The average home price as of April 30, 2021, was $356,078. That means the average home price increased by more than $110,000 in a one-year span; it was a 30.9% increase in home values. Meanwhile, the expected home price only increased by about $10,000 in that stretch.

The economists who conducted the study don’t think this trend will continue.

https://arizonasuntimes.com/20...

Using open-source data from Zillow or other providers, researchers Ken H. Johnson, Ph.D., and Eli Beracha, Ph.D., have developed a methodology to score the top 100 most overpriced or underpriced metropolitan cities in the U.S. The data allows readers to quickly see the premium or discount that they are paying in their metro, on average, and further allows them to make more informed decisions about their real estate investments.

TOP 100 U.S. HOUSING MARKETS
How Much the City is Over Priced
1 Boise City, ID	72.64%
2 Austin, TX	67.70%
3 Ogden, UT	64.73%
4 Las Vegas, NV	61.48%
5 Atlanta, GA	58.01%
6 Phoenix, AZ	57.94%
7 Provo, UT	57.02%
8 Fort Myers, FL	56.26%
9 Spokane, WA	56.25%
10 Salt Lake City, UT	55.75%
11 Charlotte, NC	55.25%
12 Lakeland, FL	53.22%
13 Tampa, FL	52.41%
14 Raleigh, NC	51.70%
15 Detroit, Ml	51.16%
16 Nashville, TN	49.13%
17 North Port-Sarasota-Bradenton, FL	48.92%
18 Dallas-Fort Worth, TX	48.35%
19 Melbourne, FL	47.71%
20 Memphis, TN	47.34%
21 Daytona Beach, FL	46.27%
22 Stockton, CA	46.07%
23 Colorado Springs, CO	45.89%
24 Grand Rapids, Ml	43.35%
25 Orlando, FL	43.04%
26 Youngstown, OH	42.79%
27 Tucson, AZ	42.24%
28 Jacksonville, FL	41.85%
29 Knoxville, TN	41.77%
30 Indianapolis, IN	41.06%
31 Greensboro, NC	40.75%
32 Dayton, OH	40.49%
33 Winston Salem, NC	39.28%
34 Seattle, WA	39.27%
35 Chattanooga, TN	39.16%
36 Columbus, OH	39.12%
37 Denver, CO	38.46%
38 Cleveland, OH	37.46%
39 Greenville, SC	37.33%
40 Cincinnati, OH	35.36%
41 Albuquerque, NM	34.32%
42 Riverside, CA	31.88%
43 Akron, OH	31.66%
44 Kansas City, MO	31.40%
45 San Antonio, TX	31.30%
46 Buffalo, NY	31.28%
47 Columbia, SC	30.92%
48 Toledo, OH	29.84%
49 Miami-Fort - Lauderdale, FL	29.84%
50 Birmingham, AL	29.78%
51 Sacramento, CA	29.56%
52 Houston, TX	29.41%
53 Charleston, SC	28.56%
54 Fresno, CA	28.25%
55 Omaha NE	27.41%
56 Bakersfield, CA	27.20%
57 Augusta, GA	26.87%
58 San Diego, CA	26.56%
59 Scranton, PA	26.30%
60 Portland, OR	26.26%
61 Jackson, MS	26.15%
62 Louisville Jefferson County, KY	25.55%
63 Rochester NY	25.42%
64 Tulsa, OK	24.65%
65 Milwaukee, Wl	24.34%
66 New Haven, CT	23.89%
67 Wichita, KS	23.31%
68 El Paso, TX	22.73%
69 Worcester, MA	22.72%
70 St Louis, MO	21.39%
71 Madison, Wl	21.12%
72 Pittsburgh, PA	20.35%
73 McAllen, TX	20.08%
74 San Jose, CA	19.81%
75 Chicago, IL	18.97%
76 Minneapolis-St Paul, MN	18.81%
77 Des Moines, IA	18.38%
78 Syracuse, NY	17.99%
79 Allentown, PA	17.79%
80 Oklahoma City, OK	17.59%
81 Providence, RI	17.42%
82 Ventura, CA	16.93%
83 Harrisburg, PA	15.40%
84 Boston, MA	13.82%
85 San Francisco, CA	13.72%
86 Springfield, MA	13.69%
87 Richmond, VA	12.82%
88 Little Rock, AR	12.73%
89 Los Angeles-Long Beach-Anaheim, CA	12.02%
90 Philadelnhia. PA	10.88%
91 Hartford, CT	10.56%
92 Stamford, CT	9.51%
93 Baton Rouge, LA	9.40%
94 Albany, NY	9.36%
95 New Orleans, LA	8.97%
96 Virginia Beach, VA	4.04%
97 Washington, DC	3.84%
98 New York, NY	3.62%
99 Urban Honolulu, HI	2.87%
100 Baltimore, MD	2.63%