Spokane lands on list of ‘most overvalued’ US housing markets
SPOKANE, Wash. — This will probably come as no surprise to you if you’ve looked at the housing market: People are moving to Spokane.
In fact, so many people are flocking to the city, Fortune Magazine ranked it sixth on its list of the 10 most overpriced housing markets in the entire nation. Homes in the area are selling for 45 percent more now than compared to earlier years.
Data from Florida Atlantic University and Florida International University looked at the top 100 metro areas and looked at house prices over the last 25 years.
So, how did we get here?
Fortune said the reason for the boom in people moving is the work-from-home movement taking place during the COVID-19 pandemic. Workers are trading in long commutes and packed city living for quieter suburbs with a lower cost of living.
A report from the Spokane Association of Realtors showed there were fewer homes on the market this July than there were last year. Inventory was down 28.1 percent this year compared to 2020. The prices, however, were going up. The July report from the Spokane Association of Realtors showed the average price for a home had gone up 26.6 percent from 2020 to 2021.
The Fortune Magazine report warned people looking to buy in the cities ranked as overvalued. It said people who move and buy could find themselves selling their property at a loss in the future when the housing market cools off.
What other cities are on the list?
- Boise, Idaho – 80.64 percent
- Austin, Texas – 50.72 percent
- Ogden, Utah – 49.70 percent
- Provo, Utah – 46.16 percent
- Detroit, Mich. – 45.57 percent
- Spokane, Wash. – 45.21 percent
- Salt Lake City, Utah – 42.41 percent
- Phoenix, Ariz. – 42.31 percent
- Las Vegas, Nev. – 41.88 percent
- Stockton, Calif. – 38.50 percent
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