State Watch

These are America’s most ‘overpriced’ housing markets

Comments:

by Alix Martichoux - 05/19/26 8:30 AM ET

Comments:

Link copied

by Alix Martichoux - 05/19/26 8:30 AM ET

Comments:

Link copied

NOW PLAYING

(NEXSTAR) – As we enter peak home-buying season, you may notice your neighborhood suddenly covered with “for sale” signs. Depending on where you live, some of those homes may be “overpriced.”

An analysis by financial site MoneyLion examined where homes are being listed for more than the area’s typical home value, meaning they could be “overpriced.” The study looked at the 200 largest housing markets, comparing the Zillow data for average home value and median list price.

In one metro area, the coastal community of Santa Maria, California, homes are listing for more than $600,000 over their average value, MoneyLion found.

Other common “overpriced” metro areas are in Texas; the Lone Star State has six spots in the top 20. The South is also well represented, with homes in Florida, Alabama, Louisiana, Arkansas, Tennessee, North Carolina and Mississippi listing high.

The 20 metro areas with the most “overpriced” homes, according to MoneyLion, are:

RankMetro area2026 average home value2026 median list price1Santa Maria, CA$1,055,812$1,690,1112Crestview, FL$408,006$647,4453Corpus Christi, TX$220,504$318,6664Brownsville, TX$199,181$277,0055Longview, TX$216,659$295,5336Tuscaloosa, AL$220,341$299,9117Salinas, CA$862,213$1,167,0938McAllen, TX$194,151$260,0009Shreveport, LA$175,093$232,54410Tyler, TX$268,861$356,31711Fort Smith, AR$200,091$263,10012Naples, FL$678,762$884,88913Cape Coral, FL$355,598$463,00014Mobile, AL$192,939$250,61315Daphne, AL$348,799$452,77816Kingsport, TN$243,902$315,24817El Paso, TX$230,443$295,73318Gulfport, MS$218,968$280,27219Hickory, NC$267,066$341,36720Jackson, MS$209,548$267,744

How can you tell if a home you’re looking at is overpriced? RocketMortgage has some tips for prospective homebuyers. First off, see how long the house has been sitting on the market. If it’s been listed a long time, it could be overpriced.

You’ll also get to know the price of comparable homes in the area as you go about your home search. Touring a home will also tip you off. Pay close attention to the condition of the home when calculating the value versus the list price.

Sales of previously occupied U.S. homes were actually flat in April, another lackluster showing for the housing market during what’s traditionally its busiest time of the year.

Existing home sales edged up 0.2% last month from March to a seasonally adjusted annual rate of 4.02 million units, the National Association of Realtors said Monday. Sales were unchanged compared to April last year.

Sales have been hovering close to a 4-million annual pace going back to 2023, far short of the historic norm that is closer to 5.2-million.

And home prices continued to rise nationally last month, albeit at a slower rate. The U.S. median sales price increased 0.9% in April from a year earlier to $417,700, an all-time high for any April on data going back to 1999, NAR said. Home prices have risen on an annual basis for 34 months in a row.

While average incomes are now rising at a faster pace than U.S. home prices, affordability remains a major hurdle for aspiring homeowners.

Years of soaring home prices, especially in the early 2020s when rock-bottom mortgage rates fueled a buying frenzy, have left many would-be homebuyers frozen out of the market. And a chronic shortage of homes for sale nationally, due partly to years of below-average new home construction, has helped prop up home prices even in a multiyear sales slump.

The Associated Press contributed to this report.

Add as preferred source on Google