California’s real estate market remains one of the priciest in the nation, with certain areas displaying staggering levels of overpricing, according to recent housing market data analysis.
Among the Golden State’s top 10 most overpriced markets is Sacramento, where the average listing price for a single-family home stands at a hefty $580,804. However, Modesto claims the title of the most overpriced market in California, with homes fetching a whopping 32% above their expected price point. This inflationary trend can be attributed to various factors, including a shortage of available homes for sale, intense competition among buyers, rising mortgage rates, and inflationary pressures.
Seeking relief from California’s exorbitant living costs, many residents and non-residents alike have turned their attention to markets like Modesto. Despite the elevated housing prices, Modesto offers relatively reasonable monthly living expenses, coming in only 13% above the national average, as reported by Go Banking Rates, a leading personal finance company.
The ranking of these housing markets was determined through a meticulous analysis of housing data collected from Zillow by the College of Business at Florida Atlantic University. Utilizing a unique methodology, researchers assessed the premium or discount that homebuyers were encountering in each of the nation’s top 100 housing markets.
In Sacramento, which secured the seventh spot among California’s most overpriced markets, homes are priced approximately 17% higher than their expected value of $497,091, according to Go Banking Rates. Premiums in Sacramento peaked in the summer of 2022, reaching around 32% above their anticipated value, mirroring the broader trend observed across most California cities, as highlighted by the personal finance company.
