Skyrocketing home prices are poised to flatten in some metropolitan areas, according to a new ranking of the most overvalued US housing markets by professors at Florida Atlantic University and Florida International University. A pricing crown is developing in the five most overvalued markets: Boise, Idaho; Austin, Texas; Ogden and Provo, Utah; and Phoenix. That's an indication that home values in those areas may be leveling off. "It does appear that several areas around the country are at an inflection point," notes Ken H. Johnson, Ph.D., an economist for FAU's Executive Education within the College of Business. Earlier this year, Johnson and Eli Beracha, with FIU's Hollo School of Real Estate launched the rankings to show the degree of overpricing or underpricing per month in the nation's 100 largest housing markets over the past 25 years. "Once prices level off, reselling the property for a higher return is very difficult," says Beracha. Above you will find data about the top five markets developing the so-called pricing crown as well as other overvalued markets that could tip as well.
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