Many residential housing markets are overvalued

Floridians who wish to buy homes may be interested in learning that many properties in the country’s biggest housing markets are considered to be overvalued. While demand is up for homes, the housing market has weakened because the rising prices have made it almost unaffordable to buy a home in many regions.

According to CoreLogic, 46 out of the top 50 housing markets in the U.S. were overvalued as of the end of July. Home prices in July of this year were also 6.7 percent higher than they were in July of 2016. Because of a low supply of houses that are available for sale, the prices are being driven up.

The National Association of Realtors reports that the supply of homes for sale in July was 9 percent lower than in July 2016. It also reports that supply has been declining for three years. While prices continue to go up, incomes have not also increased, making it much more difficult to afford homes despite the currently low mortgage interest rates. Areas with the biggest price increases include the Pacific Northwest and Denver, Colorado.

Purchasing residential property may be the biggest transaction into which a person ever enters in his or her life. When people are in the market to purchase homes, they may want to seek the advice of experienced real estate lawyers. Attorneys may help to conduct due diligence on the properties in which they are interested. They may work to make certain that their clients are protected by completing title records searches and helping to make certain that there are no issues with the homes. The attorneys may help to negotiate sales contracts to make the terms more favorable, and they may provide guidance throughout the real estate transaction process and help with the closing.