If youre shopping for a home, you want to know your market.
In some areas, home prices grow faster than the rest of the local economy.
When this happens, housing becomes overvalued in that area.
Forbes put together a list of the most overvalued and undervalued markets in the States.
To rank these markets, Forbes looked at 50 of the countrys most populated metro areas.
They then compared the areas economic growth to the appreciation of homes in the area.
When home prices grow faster than the rest of the local economy, housing is becoming overvalued.
When homes are trading for prices lower than the local economy can sustain, housing is undervalued.
This doesnt exactly mean a housing bubble is on the horizon in these places.
Instead, Forbes predicts that housing prices will probably stagnate as the economy slows down.
For more detail, check out the full Forbes article at the link below.
Americas Most Overvalued And Undervalued Housing Markets| Forbes
Photo bytkoch.
