Are Valley homes overpriced?
July 20th, 2007, 4:41 pm · Post a Comment · posted by mistywilliams
Recently, a national financial analysis company ranked the Valley No. 25 on a list of the most overvalued housing markets in the nation at 43.9 percent. Prescott ranked No. 2 at 64.6 percent.Phoenix’s median home price — where half cost more and half cost less — jumped from $140,000 in the first three months of 2003 to $257,000 during the same period this year, according to Global Insight. That’s an 84 percent spike.Overall, the company found 54 out of 317 metropolitan areas to be overvalued in the first three months of 2007. That’s an improvement from 62 metros at the end of last year. To come up with the list, Global Insight looked at household population density, mortgage interest rates, relative income levels and characteristics unique to each metro area’s history.Here are the top 10 overvalued housing markets according to the report:Bend, Ore. - 78.7 percentPrescott, Ariz. - 64.6 percentNaples, Fla. - 63.4 percentMerced, Calif. - 63.2 percentMadera, Calif. - 62.9 percentMiami, Fla. - 59.2 percentAtlantic City, N.J. - 57.8 percentRiverside-Bernardino, Calif. - 56.7 percentSalinas, Calif. - 56.3 percentFlagstaff, Ariz. - 55.6 percent
