Home prices in May rose in 99 of 100 markets tracked by Florida Atlantic University and Florida International University. Only the most overvalued market (Boise) saw a decline.
Austin is hot on Boise’s heels, however. Boise was overvalued by 70.76% in May due to the influx of remote workers seeking remote locations. Austin is next, where buyers paid 67.97% more than they should have, based on historical market prices.
“At this rate, it won’t be long before Austin overtakes Boise as the most overvalued market in the country,” said Eli Beracha, Ph.D., of FIU’s Hollo School of Real Estate, in a statement. press release prepared. “Austin has a lot going for it, including weather, culture and the economy, so it naturally attracts more residents which drives up house prices there.”
Pittsburgh is another market that could have peaked, according to the study.
“Evidence continues to suggest that we are nearing the peak of the current housing cycle,” Johnson said. “People buying homes now in the most overvalued markets should be prepared to stay there for at least several years to ride out what could be a bumpy time for prices.”
After Baltimore on the list of “bargains”, Honolulu (3.46%), Washington, DC (4.32%) and New York (4.50%).
The study says anecdotal signs of a US housing slowdown due to rising mortgage rates have yet to translate into lower house prices, but it’s now July and the rates have only increased since May.