While many people feel Austin’s home prices are overvalued, there is one city that Fitch Ratings says is more overvalued: San Antonio.
Citing data from Fitch Ratings, Forbes says San Antonio homes have a median cost of $202,600 and are overvalued by 18.6 percent. Austin is overvalued by 17 percent, and the homes have a median cost of $286,400. Remember: “Median” represents the 50th percentile in statistics while “mean” represents the average.
Fitch said more than one-quarter of the 412 housing markets is tracks have home prices at least five percent above fair local value. To determine the most over- and undervalued housing markets in the nation, Fitch Ratings weighed five metrics:
- Nominal income growth,
- Population growth,
- Change in rental prices, and
- Change in home prices.
Las Vegas (15.2%), Phoenix (14.1%) and Portland, Oregon (13.9%) rounded out the top five overpriced housing markets. Detroit, New York City, Philadelphia, Chicago and Cincinnati were listed as having the most undervalued housing markets.
In a June 2016 article, Forbes said homes in both Austin and San Antonio were overvalued by over 19 percent.