Raleigh residents are overpaying for homes, study finds

Triangle residents are overpaying for homes by more than 50%, according to a new analysis of 100 housing markets by Florida Atlantic University.

• The study suggests Raleigh homes are currently overvalued by more than 51% — the 14th largest overvaluation in a metro area.

• In April, Raleigh buyers were paying on average $445,219, while FAU’s model estimated the home at $293,494.

Why it matters: Surging housing prices are creating affordability issues across the U.S., but especially in relocation magnets such as Raleigh.

What they’re saying: “If we’re not at the peak of the current housing cycle, we’re awfully close,” Ken Johnson, an economist at Florida Atlantic University, said in a statement.

• Johnson expects the housing market to cool as mortgage rates continue to rise. But he doesn’t expect prices to fall off a cliff like they did in the 2008-2009 recession.

Our neighbors down the road in Charlotte are also overpaying, according to the study, with homes in that city overvalued by 55.3%.

FAU economists modeled expected prices using Zillow housing data from 1996 to the current day.