Seen some new homes pop up on sale around you lately? That price tag is probably something you should take a little look at. A new study is reporting that two North Carolina cities have homes overpriced by more than 50% and you may not guess which cities those are!
The News & Observer reports that a study done by a few schools in Florida found that 15 housing markets in the U.S. are overvalued by 50%. Within this list are two of North Carolina’s top cities. Raleigh, North Carolina ranks at No. 14 while Charlotte is standing at No. 11, according to The News & Observer. One Florida Atlanta University economist warns that if we are not already at a peak in the current housing cycle, then we are surely close.
In order to determine what an “overvalued housing market” is, researchers took a few things into consideration. They were able to analyze the percentage differences between a home’s expected price and what buyers actually pay. If buyers are paying more than they expected, then that is classified as an overvalued market. If buyers are paying lower than expected, then that is an undervalued market.
North Carolina Metropolitan Areas Overvalue Rankings:
- Charlotte by 55.25%
- Raleigh by 51.7%
- Greensboro by 40.75%
- Winston-Salem by 39.28%