Real Estate Study Finds Growing Risk of Housing 'Bubblettes'

CLEVELAND, Feb. 10 (PRNewswire-FirstCall) -- A study of the top 99 U.S. real estate markets announced today by the economics department of National City Corp. finds housing "bubblettes" in one-fifth of the U.S. housing stock, labeled as areas with home premiums in excess of 20 percent, a metric that may indicate future price corrections.

The study examines what home prices should be, controlling for differences in population density, relative income levels, interest rates, and historically observed market premiums or discounts.

Metropolitan Area Single Family Home Valuations*

Most overvalued
Chico, CA 43%
Stockton, CA 34%
Santa Barbara, CA 34%
Los Angeles, CA 32%
San Francisco, CA 30%
Modesto, CA 30%
San Diego, CA 28%
W. Palm, FL 26%
Sacramento, CA 25%
Las Vegas, NV 24%


Least Overvalued
Oklahoma City, OK -13%
Baton Rouge, LA -14%
New Orleans, LA -14%
Albuquerque, NM -14%
Syracuse, NY -16%
Beaumont, TX -16%
Little Rock, AR -16%
Macon, GA -17%
Memphis, TN -20%
Salt Lake, UT -23%

See the entire press release with all 99 metros at:
Real Estate Study Finds Growing Risk of Housing 'Bubblettes'