The 4 Most Overvalued Real Estate Markets in America

Nassau-Suffolk New York, Los Angeles California, Anaheim California, and Portland Oregon comprise the top of the most overvalued housing markets in the United States as of 2012.
Surprisingly, these markets are not on the top of the median home value lists or at the bottom, instead represent mid-levels and are indicative of a growing trend of lowering incomes and amenities in the middle class that can afford these homes but not a market that is keeping pace with these trends. These same four cities topped the charts in 2011 as well and, with the exception of Portland Oregon which has improved by decreasing its overvaluation since last year, have only gotten worse.
This decrease in actual value tells the story of a middle class that has a dropping in income, who is having a harder time paying for necessities, and who is being gouged in the housing market. Historically many of these areas have proven to Cheapest Land In The World 2018 be desirable due to their coastal nature and extremely mild weather conditions and temperatures, a premium luxury in the housing market. So it comes as no surprise that these areas are highly valued even if their economies are suffering.
These levels of overvaluation are still minor compared to the massive overvaluation that was the housing boom for years, when nearly five times as many housing markets in the United States were overvalued compared to the current level of eight markets. That does not excuse these markets for remaining inflated but is telling when these markets remain so when all others have managed to devalue into their proper rungs.
So what is keeping these prices high and people buying them? As was discussed before, weather and temperature are big selling points. Having no tornados, blizzards, or dangerously sweltering heat waves is a big plus to anyone’s home and neighborhood. The prospects of the job market are also a big draw to factor in, even if there are not nearly as many jobs available as there once were; many hope to strike it big in Los Angeles or become one with the trendy Culture in Portland Oregon. It is safe to say that these cities are cultural mountains in the United States. No one can say that they have not heard of Los Angeles California, in fact many confuse it as the capital of California it is such a big thing.
Other driving factors include the development of the cities and its populations. Anaheim, Portland, Los Angeles, and Nassau-Suffolk are all rapidly developing cities. The expectation is that development will progress into areas and fields that will accommodate new residents and in many cases this is true but an expectation of endless growth and potential is unrealistic. These expectations have already begun to demonstrate the growing disparity between actual income and living accommodation compared to housing costs.
The housing market will After Buying A House Checklist balance out over time.
If not completely removing undervalued and overvalued markets than at least keeping them much closer to the actual value. Each city’s reputation can only maintain a bubble for so long. Either markets will need to accommodate their buyers or buyers will need to begin being paid more with more job security so that they can accommodate their market.
In the current economy with many housing market bubbles that have popped and being ignored by Republicans and hastily patched by Democrats, it seems unlikely that buyers will accommodate their respective markets, so the markets will have to deflate.
This deflation is not a bad thing but rather exactly what the market needs to properly recover and to not hurt its residents. An overvalued market is a bad market.

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