By Kara Carlson | Phoenix Business Journal
Home prices in Phoenix and many other top markets are overvalued, according to the latest findings by the CoreLogic Home Price Index.
The latest index, which details year-over-year prices from February 2017 to February 2018, finds only 36 percent of markets were considered at value in the top 100 metropolitan areas. Among the top 50 markets, 48 percent were overvalued, including Phoenix.
“Large, national data companies looking at bunches of data tend to extend opinions based upon their national vision of what is undersupplied and oversupplied and underpriced and overpriced in a market- and, as a result, often err in assessments. Further, the overly simplistic notion that mortgage rates rising will result in fewer buyers is ridiculous. The reality in Phoenix today is this: Housing supply is tight, prices are likely to continue to rise, and rising mortgage rates have recently pushed more homebuyers into the marketplace than have been in the marketplace in more than a decade.”
