National home prices have risen nearly 50 percent since the end of 2019 andOvervaluation is a predictor of stagnant, even negative, real returns in coming years, a headwind to anyone counting on real estate as a source of wealth, wrote Greg Ip, chief economics commentator forFinancial models from the Federal Reserve and John Burns Research have homes overvalued from 25 percent to nearly 40 percent.
A home may be more valuable, in one sense, if someone now works from home. Also, San Diego County builtEconomistsHouse prices have gone up faster than inflation over the past five years, and interest rates are much higher. Both factors mean substantially bigger monthly mortgage payments. Many people are assuming that house prices will continue to go up and mortgage rates will come down, allowing them to refinance with a capital gain. But either of those assumptions could prove wrong.