ATLANTA — You’re not imagining it: Atlanta has the most overpriced housing market in the U.S.

According to research conducted by Florida Atlantic University, Atlanta residents are paying nearly 50% more for their homes than the expected price.

That’s down slightly from last August, when home buyers were paying 55% more than the expected price on average on their home.

In March, homes that were expected to list at around $240,000 were listed for more than $360,000.

The meteoric rise started in July 2020, with home prices rising from selling at just over 9% more than expected to 55% two years later.

Still, overpriced homes have not done much to cool off the Atlanta housing market. The National Association of Realtors named the Atlanta/Sandy Springs/Marietta area the number one metro area to watch in 2023.

“The Atlanta metro area continues to be more affordable than most areas across the country, with more than 20% of the renters able to afford to buy the typical home in the area,” the organization wrote.

The NAR also cited an abundance of major tech companies flocking to the Atlanta area, leading to “substantial migration gains and fast population growth.”

According to the FAU study, the next-most overpriced city in the U.S. was Detroit, Michigan, where people are paying nearly 46% above the expected price on a new home. Cape Coral, Florida, comes in at number 3, with homeowners paying just over 45% more than the expected price.

The most underpriced cities to buy houses in currently are Honolulu, Hawaii, where people are paying less than 1% more than the expected price for a home and Washington, D.C., where people are paying around 6.5% more than the expected price.

The study used open-source data from third-party housing providers to compare current prices relative to a city’s long-term pricing trend.

©2023 Cox Media Group