I Wouldn't Dare Buy Real Estate in These 3 Incredibly Overvalued Markets
Over the last two years, the median national home price has grown by 34% -- over four times the growth rate from 2018 to 2020. Many real estate markets have seen home prices increase at even higher rates during that time. Tampa, Florida, for example, has seen home prices rise by 49%, while home prices in Austin, Texas have climbed 59%. With such rapid home price growth, it's no surprise to hear that several real estate markets are overvalued and leaving homeowners and investors at risk in the event of a pullback.
Buying real estate in an overvalued market can make sense if long-term demand and lack of new housing or space for new housing is the primary factor driving price growth. But that's not the case with many overvalued markets. This is precisely why I wouldn't dare buy real estate in these three markets.
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Source Fool.com
