Seattle homes 34 percent overpriced, says study

[Yo_Mama_Been_Loggin]

Single-family homes in Seattle are overpriced by 33.8 percent, according to a recent study.

The study of the second quarter of 2006 was conducted by National City Corp. (NYSE: NCC), a Cleveland-based banking company.


Nationally, areas of the country with growing second-home markets were the most overvalued, according to the study. Naples, Fla., led the nation with homes overvalued by 101.1 percent, and Bend, Ore., was ranked No. 2 with 89.3 percent overvaluation.

The study considers housing prices, household income, population density, interest rates and historical premiums and discounts to determine a market's overvaluation.

http://www.bizjournals.com/seattle/stories/2006/09/18/daily35.html?f=et80&hbx=e_du

[SeattleGirl]

1. I am not surprised by this at all.

The cost of housing, including rent costs, is so ridiculous around here. I saw on the news a week or so ago that in the last year, housing costs in King County had risen 13%, and in Snohomish County, they had risen 18%.

Last year, the house on the corner went on the market for $375,000; it ended up selling for $350,000. And believe me, the house ain't all that. :crazy:

[flamingyouth]

2. I believe it.

But I definitely see things cooling off. There are quite a few "price reduced" tags attached to the for sale signs in my neighborhood (Montlake) now, and you never saw that a year ago.