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Report: Flagstaff Is Tenth In The Nation When It Comes To The Overevaluation Of Homes

Flagstaff has made a national top-ten list when it comes to the housing market. According to data provided to “Fox Television stations by Moody’s Analytics,” homes in 97-percent of U.S. metro areas are overpriced, with the most overvalued markets seeing homes priced at 50-to-70-percent more than what they are worth. According to “Moody’s,” Flagstaff is tenth in the nation when it comes to the most overvalued markets at 51-percent. That’s not the highest in Arizona though. Lake Havasu-Kingman is sixth in the nation at 56-percent. The Phoenix-area is 21st nationally at 46-percent. The worst market for overvaluation of homes is Boise, Idaho at 73-percent. Moody’s says many of the smaller markets, like Flagstaff, are seeing overevaluation due to demand for second-home buying. However, they predict housing prices will flatten out for the next two-to-three years as incomes and rents catch up and valuations normalize over time. Overvaluation is compared to the historical norms of local household incomes, rents and construction costs.