Southern California, home to nation’s most overvalued housing — at least, by this math
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Los Angeles County homes are the most overpriced in the nation, according to a curious new study. And Orange County and the Inland Empire don’t score much better.
By one Fed researcher’s math, Los Angeles County had the most overvalued U.S. homes, an eye-catching 68.6 percent above what research showed was normal. That was ahead of Miami (64.6 percent overvalued) and San Francisco (61.9 percent overvalued).
Bill Emmons, a researcher at the Federal Reserve Bank of St. Louis, looked at the changing relationship between state incomes and regional home pricingbetween 2000 and 2018’s first quarter to determine a “fair value” for local housing in 41 major metropolitan areas. Then Emmons considered how far current pricing deviated from each area’s norm. By his math, Los Angeles County had the most overvalued U.S. homes, an eye-catching 68.6 percent above what research showed was normal. That was ahead of Miami (64.6 percent overvalued) and San Francisco (61.9 percent overvalued).
The article is written by Jonathan Lansner for TheOCR. You can read the full article here.
Sheila Abai is a senior mortgage consultant. She utilizes her 20+ years of finance and mortgage experience to identify the best mortgage and refinancing solutions for her clients. Sheila can be contacted via email at sheilaabai10@gmail.com or via telephone at (310) 666-6601.
