Part 6/9:
An examination of housing price valuations reveals that several markets are still significantly overvalued, with Florida’s home prices currently estimated to be about 20% above normal. This overvaluation suggests that prices could drop substantially to align with long-term norms. Similar trends are observed in Texas and California, where home prices are also noticeably overvalued. Understanding these metrics can provide valuable insights for buyers, pointing to the potential for further price decreases.
Notably, Austin, Texas has seen a significant correction from being 46% overvalued to merely 8% overvalued, suggesting a more balanced market. Experts anticipate that Austin may soon enter a "fairly valued" status by the end of 2025, indicating a potential buying opportunity.