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Forbes Magazine Lists Cities with Overpriced Homes

By Michele Lerner

Forbes Magazine recently surveyed the 40 largest cities in the US to determine which cities still have the most overpriced housing.

Yes, it seems like only a few years ago real estate was in a crisis and investors couldn't get rid of homes at a fast enough rate. Where every city was full of foreclosed properties. Well, times have change in the real estate market for sure.

Now, as home prices rise, investors should look carefully at these over priced cities and be cautious when purchasing property there, since the last thing an investor wants (or any buyer, for that matter) is to overpay for a house.

Of course, working closely with a real estate agent or becoming extremely knowledgeable about your local real estate market goes a long way toward avoiding an expensive mistake.

Author Francesca Levy and Forbes researchers ranked metro areas on:

  • The percentage of homes that had seen price reductions, since this indicates that the properties had inflated prices;
  • The median number of days on the market, since overpriced homes tend to sit on the market longer than those that are fairly priced;
  • The ratio of median list price to median absorbed price. The absorbed price is the last price before it went off the market, which includes homes that have not necessarily had a closed sale.

In addition, the article took into consideration the five-year forecast for percentage change in home values by the S&P/Case-Shiller Home Price Index. This indicator was included because of the possibility of home prices rising in some markets, thus making even an above-average priced home a potentially good investment.

The top ten most overpriced metropolitan areas:

  1. Orlando-Kissimmee, Florida
  2. Miami-Fort Lauderdale-Pompano Beach, Florida
  3. Jacksonville, Florida
  4. Baltimore-Towson, Maryland
  5. Chicago-Naperville-Joliet, Illinois/Indiana/Wisconsin
  6. San Antonio, Texas
  7. Denver-Aurora, Colorado and Tampa-St. Petersburg-Clearwater, Florida (Tied)
  8. Indianapolis-Carmel, Indiana
  9. Austin-Round Rock, Texas
  10. Nashville-Davidson-Murfreesboro-Franklin, Tennessee

For the complete list of over priced homes, see them over at Forbes.com.

Read more:


Michele Lerner, a real estate expert and freelance writer with 20 years of experience, is the author of “HOMEBUYING: Tough Times, First Time, Any Time”.

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