Home buyers beware: Atlanta just made top 5 ‘most overpriced’ list

Home buyers are going to have to break the bank if they want to live in the capitol of the Peach State.

Prospective home buyers are struggling. Prices are up, inflation is high and the pandemic has put a damper on almost every other market in the world. Following a recent study by Ken H. Johnson, associate dean of graduate programs at Florida Atlantic University, Eli Beracha, director and professor at the Tibor, and Sheila Hollo School of Real Estate at Florida International University, it turns out that Atlanta home buyers have it worst than most.

As reported by Market Watch, the researchers utilized data from Zillow to rank the top 100 most overpriced and underpriced housing markets in U.S. metropolitan cities.

“For the 100 markets, we use Zillow Home Value Index (ZHVI) monthly data to develop the long-term trend for home prices, and from there we estimate a market’s average expected price and compare this estimate to the actual ZHVI values — the premium is the percentage between the two numbers,” Johnson told Market Watch.

The researchers ranked Atlanta as having the fifth most overpriced housing market in the country, a bank breaking blow to potential home buyers in the city. Homes are being priced at a 55.96% premium, according to the study.

Boise City75.18%
Ogden, UT63.33%
Las Vegas59.55%
Spokane, WA54.72%
Provo, UT54.32%
Salt Lake City53.77%

Premiums in the least underpriced U.S. housing market are a far cry to that of the Peach State’s capitol city. Baltimore home buyers have it the best this year with a minimal 2.03% premium. As all major metropolitans are currently being priced at premium rates, according to Market Watch, the Maryland city is currently offering the best deals.

Urban Honolulu2.11%
New York2.83%
Washington D.C.3.26%
Virginia Beach3.46%
Baton Rouge8.05%
New Orleans8.33%