Home prices across the nation are overvalued, in many cases by more than 10%, according to a new report on RMBS by Fitch Ratings. Indeed, in 4Q23 homes in the U.S. were overvalued by 11.1% on a population-weighted average basis – though prices may moderate later in the year.

Overvaluation was found in 90% of U.S. metropolitan statistical areas — a slight dip from the 91% affected in 3Q2023. Among these, 56% were overvalued by more than 10%, slightly fewer than the 58% in the previous quarter.

The most overvalued metro in the nation among the 50 with the highest populations was Memphis, including the Tennessee-Mississippi-Arkansas statistical area. The region is considered the commercial and cultural hub of the Mid-South and covers eleven counties in the three states.

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