As Fed raises rates, economists are now warning of 'overvalued' property markets. Some homes in Provo, Utah, drew 50 offers at the peak of housing boom. Not anymore.

Broussard, who previously rented a home from a friend in the pricey Stanford–Palo Alto area south of San Francisco, where housing costs, she told MarketWatch, are “just totally outrageous.”

That influx has come at a price: Recent research from Florida Atlantic University and Florida International University suggests that, based on historical pricing, properties in several cities in Utah — including Ogden and Provo — could be overvalued by as much as 50%.

Local experts, however, disagree that houses in Provo are overvalued and destined to decline. Instead, they say, prices are actually likely to appreciate further given the surge of interest in the Beehive State. The question is, for how long? Case in point: At one point during the pandemic, Andrew Ford, a Realtor in Provo, told MarketWatch that it was not unusual for a property to receive 50 offers. “It was crazy to submit the offers to our sellers,” he said.

The authors add that just because a market is overvalued by 50% or 60% based on historical price movements does not mean it will fall by that amount, but they don’t discount a painful wakeup call for buyers and sellers in those markets.

It's not overvalued if people are paying for it!

I own like half of Texas rn

Take a 2nd mortgage, and lock in the value.

For some reason, I've never understood why anybody would want to live in Utah.

So are they over priced or has there cost increased due to supply and demand affects?

'The idea we're going to be able to click a switch, bring down cost of gas, is not likely in near term. Nor is it with regard to food' Biden. It's global inflation, Fed can't control global inflation. Inflation remains high. Fed raised rate = housing market dies. Recession ahead.

Means there will be a lot of underwater or abandoned homes there when the recession starts to bite.

All parties eventually end. Some hangovers r fugly

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