Overvalued Housing Markets

A report out by Global Insight says that some 39% of single-family homes are "extremely overvalued", and at risk for a price correction. 17 of the 20 most overvalued markets were located in California and Florida. No surprise there.

They continue to talk about the risk prices cooling. But I think the cooling of prices is healthy. As long as the economy and jobs stay healthy, I think it is possible that we can have a soft landing in the housing market, and not the type of cataclysmic decline that the bears are predicting.
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