• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Looking at the overvalued areas

At first glance, the urban triumvirate Fitch identifies may seem strange. Buffalo’s claims to fame are chicken wings, blizzards and a football team that’s never won a Super Bowl despite four consecutive tries. In Memphis, Elvis left the building long ago, although it’s still a mecca for aspiring musicians. And in between funkier midwest locales Chicago and Cleveland, Indianapolis is regarded as more of a pit stop.

If these three overvalued areas collectively raise the question “why?” — the actual prices might give a clue. Homes in these cities are relatively cheap, and cheap property is in high demand. “Overvalued” may sound financially ominous, but it isn’t quite the same as out of reach.

Here’s an overhead view: the median national home price, according to Redfin, is $439,716 as of May. By comparison, the median home price in Memphis is $190,000, in Buffalo it’s 209,250 and in Indianapolis it’s $250,000.

Stop overpaying for home insurance

Home insurance is an essential expense – one that can often be pricey. You can lower your monthly recurring expenses by finding a more economical alternative for home insurance.

Officialhomeinsurance can help you do just that. Their online marketplace of vetted home insurance providers allows you to quickly shop around for rates from the country’s top insurance companies, and ensure you’re paying the lowest price possible for your home insurance.

Explore better rates

A topsy-turvy housing market

The state of overvaluation brings with it pros and cons, some not so obvious. On the one hand, as housing values go up, so do sales prices. That could leave you in luck if you’re in one of the most overvalued markets and want to put your house up for sale.

Trouble is, any new digs you purchase must be affordable, even if the property has better value. This can be a challenge in part due to elevated mortgage rates, which currently hover around the 7% mark.

If home values are based on historical prices, perhaps it’s time to reconsider the past in light of the present — including the forces of inflation. For example, if your home doubled in price between 1996 and today, then guess what? The buying power of $100 was also cut in half. And no matter how you slice it, a new home is an increasingly expensive proposition.

Sponsored

This 2 Minute Move Could Knock $500/Year off Your Car Insurance in 2024

Saving money on car insurance with BestMoney is a simple way to reduce your expenses. You’ll often get the same, or even better, insurance for less than what you’re paying right now.

There’s no reason not to at least try this free service. Check out BestMoney today, and take a turn in the right direction.

Lou Carlozo Freelance writer

Lou Carlozo is a freelance contributor to Moneywise.

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.