Among 413 Housing Markets, 96% Are Overvalued – Crash Coming?

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As interest rates rise, the recession worsens, and inflation strikes fear in buyers, the housing markets are showing signs of a possible crash. Houses were also overpriced. People were buying enthusiastically after COVID when there was a shortage of homes for sale.

People should remember that there is a contagion market when housing looks like a bad investment.  The fear of buying spreads if housing starts to look like a bad investment.

Back in May, Zandi at Moody’s boldly predicted that the housing market was facing a correction.

Through the summer, Zandi said, U.S. housing activity would plummet. As it did, Zandi said home prices in bubbly markets like Phoenix and Boise would begin falling.

If a recession hits [it did hit], Zandi said, those significantly “overvalued” housing markets would likely see home prices slashed by 15% to 20%.

View this interactive chart on Fortune.com

Among the 413 regional housing markets measured by Moody’s Analytics, the firm deems 96% are “overvalued.” Simply put: Nearly the entire country has higher house prices than underlying fundamentals historically support.

Among the markets analyzed by Moody’s Analytics, 183 are “overvalued” by more than 25%. That’s up from 150 regional housing markets it deemed “overvalued” by more than 25% in the fourth quarter of 2021. The most “overvalued” markets are concentrated in fast-growing cities in the Mountain West and Sunbelt that benefited from the nation’s work-from-home boom. That includes both Boise (“overvalued” by 72%) and Charlotte (“overvalued” by 66%).

Watch him describe what is happening and what will happen:


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Lyons lee
Lyons lee
6 months ago

Very good list of US and world economic data – Truth Be Told Podcast: “Is 2022 Our Annus Horribilis?” September 10, 2022https://rightwirereport.com/2022/09/10/truth-be-told-podcast-is-2022-our-annus-horribilis-september-10-2022/

Spectator
Spectator
6 months ago

Everyone leaving Dem hellholes is moving to the last Free States, Texas and Florida so no housing depressions there.

Zenit08
Zenit08
6 months ago
Reply to  Spectator

Gotta agree there. Traffic here in central FL is at winter levels year-round. Thousands of snowbirds never left in 2020 or later, and millions of red-pilled northerners have joined them. That said, a drop can still happen in leftard places like Tampa and Ft. Lauderdale.

JTravianDTerius
JTravianDTerius
6 months ago
Reply to  Zenit08

Thanks for pointing out 2 of the l*b*r*l sh*th*l*s of Florida. Those undesirables who weren’t red pilled and migrated from the Tri-state area and OH, PA and CHI have metastasized in TPA and FTL and turned those places into Detroit-like crime infested ghettos. FL is a great state otherwise.

GuvGeek
GuvGeek
6 months ago

I saw signs of this last summer which is why I hurried up and put my condo up for sale. But don’t worry, Blackrock is out there just waiting to scoop up housing at 20 cents on the Dollar.