US Real Estate 25% To 60% Overvalued

US Real Estate 25% To 60% Overvalued
US real estate is looking like a bubble, housing analyst Mark Hanson says. Propped up by “unorthodox capital,” US properties are between 25% and 60% overvalued. Market value should come from the average homebuyers down-paying 20% while taking on a 43% debt-to-income ratio, but the math just isn’t adding up, Hanson says. In the Bay Area, for instance, Mark’s math would put the average home at $778k, about half the real average of $1.45M, Fortune reports. The “prop-up” cash comes from institutional investors buying up homes as landlords, plus foreign buyers parking money in America’s “safe haven” real estate market, a trend likely to continue with the recent EB-5 extension.

Read more at: https://www.bisnow.com/national/news/commercial-real-estate/us-real-estate-in-25-to-60-bubble-54516?utm_source=CopyShare&utm_medium=Browser

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