Out of the top 100 markets in the US, 14 are overvalued, according to research by CoreLogic, which uses the market's real disposable income per capita to calculate home prices. That's double the amount of Q1.
Most overvalued markets are in the South, with the highest concentration in Texas, where five of its six top markets are defined as overvalued. The Lone Star State's also home to the top two overall overvalued markets: Austin and Houston. The percentage of home price relative to the long-run sustainable level for Austin is a whopping 42.3% and 25.4% for Houston.
The surge in Texas property prices can be attributed to the oil and gas boom as well as the job and population growth that occurred in 2004 to 2014.
Following those two are Charleston, Miami, Washington, DC, Knoxville, Philadelphia, Dallas, San Antonio, Nashville, Cape Coral, FL and Fort Worth, TX. The last two of the 14 are Silver Spring, MD, and Denver.
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