Two North Carolina Cities Have Homes Overpriced By More Than 50%

Seen some new homes pop up on sale around you lately? That price tag is probably something you should take a little look at. A new study is reporting that two North Carolina cities have homes overpriced by more than 50% and you may not guess which cities those are!

The News & Observer reports that a study done by a few schools in Florida found that 15 housing markets in the U.S. are overvalued by 50%. Within this list are two of North Carolina's top cities. Raleigh, North Carolina ranks at No. 14 while Charlotte is standing at No. 11, according to The News & Observer. One Florida Atlanta University economist warns that if we are not already at a peak in the current housing cycle, then we are surely close.

In order to determine what an "overvalued housing market" is, researchers took a few things into consideration. They were able to analyze the percentage differences between a home's expected price and what buyers actually pay. If buyers are paying more than they expected, then that is classified as an overvalued market. If buyers are paying lower than expected, then that is an undervalued market.

Housing prices have truly skyrocketed over the last few years. Homebuyers are often trying to calculate all the expenses they will need to be able to afford their dream home. Saving money during the home buying process is one of the biggest things buyers look to do. But, what about some areas being naturally more expensive than others?

Charlotte Stories wrote a story on counties in North Carolina with the lowest closing cost rates. The information was done through an annual study with Smart Asset. Smart Asset analyzes where closing costs are lowest as a percentage of each county’s median home value. Out of 100 counties in the state, Mecklenburg County actually ranked among the 10th lowest relative closing costs. Check out the list of how top counties in North Carolina ranked based on their closing cost rates.