When you buy a new home, you want that home to be worth what you paid for it. In Michigan, one city is actually one of the worst to buy a new house and get your money’s worth. That city has been named one of the most overpriced, inflated housing markets in the U.S.
GoBankingRates.com has a new study out naming the “10 Most Overpriced Housing Markets in the U.S.” In the study, they say, “Although the housing market is finally cooling down, there are some areas across the U.S. where the market remains hot, and buyers are still paying much more than homes are actually worth.” They add that, “Florida Atlantic University determined the most overpriced housing markets in the nation by comparing the average expected home values based on historical trends to the average list prices across the 100 largest metro areas and finding the cities with the largest percent differences between the two.”
Before we get to Michigan, No. 1 on this list is actually Atlanta, Georgia. In Atlanta, the average listing price is $357,677, but the expected home value is $236,627. Also, the difference between home value and list price is 51.16%. Are your surprised by the No. 1 pick?
Michigan Housing Market news:
I’m kind of surprised by this, but Detroit comes in at No. 7 on the list of the cities with the most overpriced homes. The average listing price is $226,101, but the expected home value is just $157,046. The difference between home value and list price is 43.97%. That’s a big difference. Find the full list of GoBankingRates.com’s “10 Most Overpriced Housing Markets in the U.S.” here.