LI Now ‘Overvalued Housing Market’ Following Pandemic Boom, Report Says
Homes in some parts of downstate New York are being considered “overvalued” amid the current housing bubble, according to a new Fortune Magazine report.
Fortune studied home price growth, which is wildly outpacing income growth across the country, with different areas across the US considered “overvalued,” “undervalued,” or “normal.”
Specifically, in downstate New York, both Suffolk and Nassau counties, as well as Westchester have been listed as being “overvalued,” the report states. Other counties upstate also earned the distinction, while markets in the rest of the state have remained largely unchanged.
Citing data from CoreLogic, which evaluated hundreds of metropolitan markets, Fortune found that nearly 68 percent are “overvalued,” up from a previous study, while 24.5 percent of housing markets are “normal” and 7.6 percent are “undervalued.”
According to the report, the “overvalued” markets have seen a rise in mortgage rates, which are impacting new or existing home sales, and mortgage applications, which are facing a steep decline.
Moving forward, CoreLogic is forecasting that home prices across the country will continue to rise over the next year, though Bridgeport was one of four markets that will have a “very high” likelihood of house prices actually dropping over the next 12 months.
The complete report from Fortune Magazine can be found here.
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