Southern California takes the trophy for most overvalued real estate in the nation: Austin Texas now home to inflated real estate as well.
ByYou might think that the Bay Area is home to the most inflated real estate in the US but being “over priced” is also relative to local area incomes. The army of tech professionals in the Bay Area earning healthy household incomes is expansive. Sure, having a household earning $150,000 a year might make it tight to purchase a $1 million crap shack but that is the situation. So it should come as no surprise that in the land of “All Hat and no Cattle” that we have the most overpriced real estate. According to a report by Trulia the most overpriced areas come in as Austin (Texas), Orange County, and Los Angeles. Why? Incomes are detached from the rise of home prices. Of course in some areas foreign money and investors with deep pockets have pushed prices to stratospheric levels. In many parts of the US home prices are within reasonable ranges thanks to the Fed’s ridiculously low interest rate fury road policy. Yet Millennials are not buying in mass because many are deep in debt and incomes are just not keeping up with home prices. If home prices are overvalued, how much are they overvalued by? If everyone thought home prices were within reason there really wouldn’t be all this interest and analysis on the subject…
