A report released today by National City Corp looked at 99 real estate markets around the country and determined how much they were overvalued. They calculated it using “What should home prices be in each of the 99 largest metro areas after controlling for differences in population density, relative income levels, interest rates and historically observed premiums or discounts in those markets? The study compared these calculated norms to actual current prices.”
Here’s the most overvalued areas in their report:
The survey identified several areas with overvaluation in excess of 20 percent: Chico, Calif., 43 percent; Stockton, Calif., 34 percent; Santa Barbara, Calif., 34 percent; Los Angeles, Calif., 32 percent; San Francisco, Calif., 30 percent; Modesto, Calif., 30 percent; San Diego, Calif., 28 percent; W. Palm, Fla., 26 percent; Sacramento, Calif., 25 percent; Las Vegas, Nev., 24 percent; Portland, Ore., 24 percent; Miami, Fla., 23 percent; Sarasota, Fla., 22 percent; Detroit, Mich., 22 percent; Saginaw, Mich., 21 percent; and Bellingham, Wash., 21 percent.