Half of the biggest housing markets in the US are overvalued — and it could spell trouble for homebuyers
- The US housing market is tough for buyers right now — low supply has led to high demand and an increase in prices.
- Nationally, home prices rose by 7% from March 2017 to March 2018.
- But incomes haven’t increased at the same rate, leading to overvaluation in some of the country’s biggest housing markets, including Los Angeles, New York City, Denver, and Houston.
The US housing market is something of a seller’s paradise right now.
Aging millennials are itching to become homeowners, but the supply of starter homes is at a historic low. Only 20% of the 1.2 million homes on the market are entry-level, according to Zillow, compared to 51% of for-sale homes priced in the most expensive tier.
In turn, prices are appreciating rapidly and incomes aren’t keeping pace. This leads to an overvalued market, meaning prices are above sustainable levels — and……………….