Northwest Dominates Overvalued Markets List

According to CNNMoney.com Atlantic City NJ is the most overvalued city in America, but the rest of the list is dominated by Oregon and Washington. Based on the percentage of homes valued over the median home price, here's the list:

Metro area	Median home price	Percent overvalued 2010	Percent overvalued 2006
Atlantic City, N.J.	$232,100	30.2%	59%
Wenatchee, Wash.	$240,900	28.9%	13%
Ocean City, N.J.	$294,800	26.6%	47%
Longview, Wash.	$184,700	22.3%	24%
Honolulu, Hawaii	$605,300	21.9%	31%
Asheville, N.C.	$172,900	21.8%	24%
Portland, Ore.	$267,600	20.8%	35%
Bellingham, Wash.	$280,200	20.0%	43%
Corvallis, Ore.	$266,400	18.9%	14%
Salem, Ore.	$201,000	18.2%	25%

Source: PNC Financial Services and IHS Global Insight

I knew that Corvallis would be on the list, I was born and raised there, and my family still lives there, and compared to the home prices in even just the Willamette Valley, Corvallis is ridiculous. The good news is that Portland is much less overvalued than it was in 2006, down about 15%. The market is evening itself out, settling back into an affordable range.