Top U.S. housing markets may be overvalued

by Ryan Smith16 Sep 2015
Is the U.S. heading toward another housing bubble? Several of the top markets in the country may be overvalued, according to a new report from analytics firm CoreLogic.

The company’s Market Condition Indicators report that 14 of the country’s top 100 markets are currently overvalued. That’s twice as many as at the end of the first quarter. Texas has the largest number, with five of its top six markets identified as overvalued. CoreLogic identifies markets as overvalued, undervalued or at value based on the markets’ real disposable income per capita.

Fortunately, CoreLogic expects the national housing market to remain in the normal range through 2017, with most of the top 100 markets staying at value. But overvalued housing markets like the ones in Texas may not be sustainable.

“Home prices in five Texas markets are well above their historical peak levels partly due to strong job growth and to the absence of the severe boom-bust housing cycle that was seen elsewhere," the CoreLogic report stated. “Between 2006 and 2014, an oil and gas boom had fueled job and population growth in some markets, pushing home prices well above their sustainable levels in these markets.

"Since last year, geopolitical events have shifted in favor of excess oil supply, possibly exerting further downward pressure on oil prices in the next few years and impacting some of these Texas markets. The areas that have become overvalued since last quarter are: Cape Coral, Fla., two Tennessee markets, Knoxville and Nashville – Davidson – Murfreesboro – Franklin, Philadelphia, Silver Spring–Frederick–Rockville metro in Maryland and Denver–Aurora–Lakewood in Colorado. As home prices have risen significantly since 2013, homes have become less affordable, and therefore, home prices less sustainable," the reports says.

In the run-up to the housing collapse, home prices hit more than 10% above long-term sustainable levels. After the collapse, prices plummeted to more than 10% below sustainable levels. By June of this year, prices had recovered to 3.6% below sustainable levels, with that gap projected to shrink to 1.7% by the end of 2017. 


  • by Jake | 9/16/2015 9:42:39 PM

    Despite the fact that the nation’s courtrooms remain active crime scenes, with backdated, forged and fabricated documents still sloshing around them, state and federal regulators have not filed new charges of misconduct against Bank of America, Deutsche Bank, U.S. Bank, Green Tree, or any other mortgage industry participant, since the round of national settlements over foreclosure fraud ineffectively closed the issue.The BANKSTERS continue to commit fraud upon hardworking people and fraud upon the courts. The biggest Ponzi scheme the world has ever seen , where the Banksters created credit out of thin air, not for their borrowers, but for the banksters themselves via the Federal Reserve’s magic check book, with no bank account behind it. The Bankster then mortgageed that imaginary money to people on the security of overvalued real property with the deliberate aim of reducing the artificially raised property prices and putting people out of work.People without income cannot pay their bills, so they were guaranteed they could steal all that real property from their rightful owners. Of course you would say to yourself, that makes no sense because the Banksters would lose money when foreclosing on the security , but you’d be wrong because the banksters insured the debt with an insurance company, but just forgot to tell the borrowers that. SO they knew they could not lose. Its what you might call having your cake and eating it too. You see, just secretly insuring the debt was the way they ensured that they lost no money. First they sold investors in Wall Street on the idea of using pensions and other fund moneys to invest in the profitable housing market. Then they sold homeowners on the idea of borrowing money against their rising property values, secure in knowing that they had artificially raised those prices and knew they could reverse that trend rapidly, when the time was right. Then they found another group of investors and sold them on insuring against the unlikely risk of those secure mortgages defaulting. But, as you know, they had already insured the downside risk. So they devised a new name that no one understood called the credit default swap. These were not insurance policies regulated by the states, but were unregulated securities sold on wall street to investors. So, once they got the business of insurance outside of the regulatory realm, it was no holds barred and they sold the same investment to up to 20 different groups in respect of every mortgage pool they pretended to create in the securitized mortgage scam.But people need to lose the mindset of someone who has been brainwashed by the garbage put out by government at state and federal level and echoed in the corporate owned media.
    SO therefore, The banksters along side Freddie and Fannie, were and still are continuing to submit fraudulent documents to the courts in order to steal homes from homeowners. They and their substitute trustee lawyers (ie Samuel I White PC, just one of many ) are submitting FRAUDULENT papers to the courts in order to FRAUDULENTLY foreclose on homeowners across the nation. Mortgage notes with Forged Owners signatures and ta-da endorsements are being submitted to the courts in order to steal homes. Bank of america(or as they like to refer to themselves…fka countrywide) made a deal with the attorney generals to modify mortgages that they really had no right to modify as they were illegally acquired to begin with. They committed notary fraud, forgery, added fake endorsements and as their crimes began to come to light…………they made a deal and instead of modifications (which they LED the homeowners to believe what was happening)….they handed the fraudulent documents over to Green Tree, now known as Ditech: corporate criminals are notorious for changing their names after lights shine on their crimes…, among others, to foreclose. Meanwhile, homeowners are the ones who are paying the price by having their homes taken because of felonies that are being committed . Fraud upon the courts, racketeering, forgery, wire fraud, notary fraud…pathetic, nauseating, and just all around COMPLETELY disgusting. Meanwhile,a large majority of the so called judges are just as corrupt and right in bed with the pathetic, slimeball, evil to the core, corporate criminals. Wake up America.
    To all involved: enjoy your 1000 years that awaits you.


Should CFPB have more supervision over credit agencies?