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  • KNWA & FOX24 - Northwest Arkansas & River Valley News

    Study: Homes are overvalued the most in Arkansas, four other states

    By Kyler Swaim,

    2024-07-13

    https://img.particlenews.com/image.php?url=2Ebgyz_0uQIvrMv00

    FAYETTEVILLE, Ark. (KNWA/KFTA) — A new study says most homes in the United States are overvalued, especially in Arkansas and four other states.

    The report from Fitch Ratings found homes were overvalued by more than 11% at the end of last year, a trend occurring in about 90% of metro areas across the country.

    Four states in the south, Arkansas, South Carolina, Alabama and Tennessee were found to have the sharpest rise in overvalued homes in 2023 along with one state in the northwest U.S. in Montana.

    Fitch Ratings said it used home price data from Redfin to determine the five states where homes were most overvalued.

    Data: These are the 10 safest cities in Arkansas
    State Annual change in home prices Median listing price
    Tennessee 8.3% $443,550
    Arkansas 9.4% $299,900
    South Carolina 7.9% $351,370
    Montana 5.6% $649,000
    Alabama 2.2% $330,950
    (Courtesy: Redfin)

    FOX Business said multiple factors have led to the rise in home prices.

    A Realtor.com study from April found that the available home supply has not rebounded since the start of the pandemic and remained down 34.3% the typical amount before March 2020.

    “Years of underbuilding fueled a shortage of homes in the country, a problem that was later exacerbated by the rapid rise in mortgage rates and expensive construction materials,” FOX Business’ Megan Henney describes another reason for the rise in house prices.

    Study: The most and least affordable ZIP codes in Arkansas

    Fitch Ratings also looked at the five metropolitan areas where homes were most overvalued with two of them in Tennessee, reported by Marketwatch .

    Metro area Annual change in home prices Median sales price in March 2024
    Memphis, Tenn. -1.3% $172,000
    Buffalo-Cheektowaga-Niagara Falls, N.Y. 4.5% $177,500
    Indianapolis-Carmel-Anderson, Ind. 6.2% $240,000
    Milwaukee-Waukesha-West Allis, Wis. 5.9% $185,000
    Nashville-Davidson-Murfreesboro-Franklin, Tenn. 1.1% $474,990
    (Courtesy: Redfin)

    While prices were down in Memphis from a year earlier, Fitch Ratings said they had risen over the five previous years.

    Fitch said the current environment of high rates and high prices is here to stay, at least for now.

    To see the full breakdown of the study, click here .

    Copyright 2024 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

    For the latest news, weather, sports, and streaming video, head to KNWA FOX24.

    Related Search

    Real estate marketHome price trendsHousing affordabilityReal estateMortgage ratesHousing prices

    Comments / 19

    Add a Comment
    Eddie Gray
    07-17
    Yeah thanks to California
    Heather Buckwalter-Edwards
    07-15
    For sure!
    View all comments

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