Connect with us


Homes are overvalued in most of the US, and the problem is worse in these 5 states

Homes are overvalued in most of the US, and the problem is worse in these 5 states


Lance Lambert, co-founder and editor-in-chief of ResiClub, discusses America's housing affordability crisis on “Making Money.”

In the United States, an overwhelming majority of housing is overvalued, as high mortgage rates and a persistent housing shortage drive home prices even higher.

A new report released by Fitch Ratings finds that housing was overvalued by 11.1% at the end of 2023, a trend occurring in approximately 90% of U.S. metropolitan areas.

But the increase in the number of homes sold at prices above the long-term average was noticeably higher in a handful of Southern states.

Tennessee, Arkansas and South Carolina saw the largest increase in overvalued housing, followed by Montana and Alabama.


Several factors are behind the price surge.

Years of underbuilding fueled a housing shortage in the country, a problem that was later exacerbated by rapidly rising mortgage rates and expensive building materials.

The supply of available homes remains down 34.3% from the usual amount before the COVID-19 pandemic began in early 2020, according to a separate report released by

Rising mortgage rates over the past three years have also created a “golden handcuff” effect on the real estate market. Sellers who set a record mortgage rate of 3% or less at the start of the pandemic have been reluctant to sell, further limiting supply and leaving eager potential buyers with few options.


Homes in the Issaquah Highlands area in Issaquah, Washington, April 16, 2024. (Photographer: David Ryder/Bloomberg via Getty Images / Getty Images)

Although an uptick in the number of real estate listings in some markets is a welcome sign that suggests “early signs of normalization,” Fitch said “the pace is tempered by persistently high mortgage rates and rising home prices.” real estate”.

Economists predict that mortgage rates will remain high in 2024 and will only begin to fall when the Federal Reserve begins cutting rates. Even then, rates are unlikely to return to the lows seen during the pandemic. Additionally, investors are growing increasingly skeptical about the chances of a Fed rate hike this year, given a string of higher-than-expected inflation reports earlier this year.


Mortgage buyer Freddie Mac said Thursday that the average rate on a 30-year loan fell last week to 7.02%. Although this figure is down from the high of 7.79% reached in fall 2023, it is still significantly higher than the lows of just 3% recorded during the pandemic.

A sign in front of a home for sale in Atlanta, Georgia, September 6, 2023. (Photographer: Elijah Nouvelage/Bloomberg via Getty Images / Getty Images)

Most homeowners say they are nearly twice as willing to sell their home if their mortgage rate is 5% or higher, according to a separate Zillow survey. Currently, around 80% of mortgage holders have a rate below 5%.

A separate survey by Redfin shows that the combination of high mortgage rates and high home prices pushed the median monthly housing payment to a record high of $2,775, an 11% increase from the same period l 'last year.


“Market conditions for buyers remain challenging with few homes listed and homeownership costs continuing to rise,” said Ben Ayers, Nationwide senior economist. “Despite strong fundamentals for demographic demand and a strong job market, many first-time buyers are being priced out of the market due to high financing rates and rising prices.”




The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos


to request, modification Contact us at Here or [email protected]