Simone Del Rosario: The housing market’s been red hot over the last two years and prices are at all-time highs. But with mortgage rates climbing – sales are starting to plunge and the housing bubble alarm is going off. Here are the most overvalued housing markets in this week’s five for friday.
Coming in at number 5: Atlanta Georgia, where homes are fetching a 58 percent premium over the actual economic value. Affordable just a few years ago – Atlanta became a big draw for people escaping new york city and d-c. I mean, why work in a studio apartment during covid when you could sit on a southern porch sipping a cocktail? But if those big city salaries start to dry up, it could deflate that bubble.
Those looking for fun in the sun flocked to our number 4.
Vince Vaughn and Jon Favreau (from the film Swingers): Vegas baby, Vegas!
Simone Del Rosario: Homes in the Nevada desert are selling at a 61 percent premium. Vegas has been growing for years, thanks to no income tax and plus 300 days of sunny weather. But Vegas was one of the cities that felt the most pain during the last housing crisis. so you have to wonder: Is this just another gamble in sin city?
Number three proves buyers aren’t only looking for glitz and glam or a major metropolitan. Ogden Utah’s homes are selling at a 65 percent premium after the state saw some major covid migration. Who wouldn’t move to a place that has skiing in the winter with hiking and fishing in the warm weather months.
OK. We all have that friend who claims they’re going to pick up and move to number 2 on the list. Austin, TX has seen an influx of high profile celebrities and tech workers relocating from California to “Silicon Hills.” It’s no wonder Austin homes now fetch a premium of 67 percent. no state income tax, “weird” culture and don’t forget the barbecue, all premiums over california. But these prices are looking more California every day.
And the most overvalued housing market is… Boise, Idaho. The 72 percent premium is mostly blamed on those left coast neighbors. Low prices attracted overtaxed Californians, creating a housing shortage, which drove up prices. While experts predict prices nationwide will stabilize, Boise’s one of those markets that could see a 10 percent drop in the coming years.
I wanted a potato joke for Idaho, but I just couldn’t hash it out. (crowd groaning) that’s your five for friday. I’m Simone Del Rosario. See you next week.
