This is Argyn's blog. I comment on topics of my interests such as software, math, finance, and music. Also, I write about local events in Northern Virginia, USA and all things related to Kazakhstan

Wednesday, August 17, 2005

Home prices 'extremely overvalued' in 53 cities

According to this article, 53 cities have overpriced real estate. My problem is that I'm not sure how do they calculate "correct" price. It seems that it's based on "historical" trends, which I don't trust anyways. Washington DC is #49 with 31% overpricing, see the chart here.

Fifty-three metropolitan areas representing 31% of the total U.S. housing market are considered extremely overvalued and confront a high risk of future price corrections, a study conducted by National City Corp. says. The study determines a market extremely overvalued if prices are 30% above where the study estimates they should be based on historic price data, area income, mortgage rates and population density.

No comments: