X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON – The chief economist of National City Corp., has examined 299 metro areas that make up 80% of the U.S. housing market and determined that single-family home prices are “extremely overvalued” in 53 cities that make up nearly a third of the total U.S. housing market. The findings, says Richard DeKaser, puts these cities at high risk of price declines. He determined a market to be extremely overvalued if prices are 30% above where DeKaser estimates they should be based on historic price data, area income, mortgage rates, and population density. In 85% of the cities surveyed, the economist said home-price gains outpaced income gains during the past year. Based on those factors, the highest-risk markets are in California (25 out of 53 listed cities); Southern Florida (10 cities); parts of the Boston area; Nassau and Suffolk counties, Long Island, N.Y,; and Ocean City, N.J. The 53 metropolitan areas DeKaser found to be the most vulnerable to price corrections in the future include: -

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.