Metro Housing Markets awaiting a bubble burst?

High-priced housing faces risks Fifty-three metropolitan areas representing 31% of the total U.S. housing market are considered extremely overvalued and confront a high risk of future price corrections, a study conducted by National City Corp. says. The study determines a market extremely overvalued if prices are 30% above where the study estimates they should be based on historic price data, area income, mortgage rates and population density. Metro areas that are extremely overvalued and vulnerable to price correction: Rank Metro area Q1 valuation 1 Santa Barbara, Calif. 69% 2 Salinas, Calif. 67% 3 Naples, Fla. 62% 4 Riverside, Calif. 60% 5 Merced, Calif. 59% 6 Stockton, Calif. 58% 7 Port St. Lucie, Fla. 58% 8 Madera, Calif. 57% 9 Napa, Calif. 57% 10 Medford, Ore. 55% 11 Sacramento, Calif. 54% 12 Modesto, Calif. 53% 13 San Diego, Calif. 53% 14 Santa Rosa, Calif. 52% 15 Chico, Calif. 52% 16 Barnstable Town, Mass. 50% 17 San Luis Obispo, Calif. 49% 18 Oxnard, Calif. 48% 19 Fresno, Calif. 48% 20 Los Angeles, Calif. 48% 21 Miami, Fla. 46% 22 West Palm Beach, Fla. 46% 23 Vallejo, Calif. 45% 24 Ocean City, N.J. 45% 25 Bend, Ore. 45% 26 Sarasota, Fla. 45% 27 Redding, Calif. 44% 28 Fort Lauderdale, Fla. 43% 29 Nassau-Suffolk, N.Y. 42% 30 Santa Ana, Calif. 41% 31 Atlantic City, N.J. 41% 32 Bakersfield, Calif. 40% 33 Oakland, Calif. 39% 34 Santa Cruz, Calif. 39% 35 Palm Bay, Fla. 38% 36 Las Vegas, Nev. 38% 37 Poughkeepsie, N.Y. 37% 38 Vero Beach, Fla. 37% 39 San Jose, Calif. 36% 40 Bellingham, Wash. 35% 41 Panama City, Fla. 35% 42 Calif.pe Coral, Fla. 35% 43 Providence, R.I. 34% 44 Reno, Nev. 33% 45 Kingston, N.Y. 32% 46 Visalia, Calif. 32% 47 Deltona, Fla. 31% 48 Boston, Mass. 31% 49 Washington D.C. 31% 50 Essex County, Mass. 30% 51 San Francisco, Calif. 30% 52 Prescott, Ariz. 30% 53 Duluth, Minn. 30% http://www.usatoday.com/money/perfi/...valuations.htm It seems that California Florida, and New York are the most over priced areas of the country. Whats your take?>