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.

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