Housing Bubble Is About To Burst In These 12 Markets

Half Of The Nation’s Top 50 Real Estate Markets Are In A Housing Bubble That Is Ready To Burst

Core Logic is stating that more than half of the nation’s top 50 housing markets are in a housing bubble and were considered overvalued in April. This news is an indication that these twelve markets are in a real estate bubble that can burst any time.

26 markets were considered overvalued and only seven were undervalued. In the top 100 markets, 40 were overvalued, while 32 were at value and 28 were undervalued.

Nationwide increased 6.9% from a year ago and 1.2% compared to March. Additionally, all 50 states saw home prices rise in April year-over-year.

CoreLogic defines an overvalued market as a market where home prices are at least 10% above sustainable levels. An undervalued market is one that is at least 10% below sustainable levels.

CoreLogic Chief Economist Frank Nothaft told National Mortgage News:

The best antidote for rising home prices is additional supply. New construction has failed to keep up with and meet new housing growth or replace existing inventory. More construction of for-sale and rental housing will alleviate housing cost pressures.

CoreLogic expects a somewhat slower rate of appreciation over the next 12 months. CoreLogic also expects a scant 0.2% increase in national home prices in May from April.

Read more at MFI-Miami