Honolulu Homes Overvalued

In what comes as no surprise to readers of this blog, the Star Bulletin reports that Honolulu homes are overpriced by over a third:

The study found Honolulu's housing market to be 39.2 percent overvalued in the first quarter of 2006. That's a major increase from the first quarter of 2005, when homes were found to be 19.1 percent overvalued.

...

National City Corp. considers overvaluations greater than 34 percent to be "extreme." With an overvaluation rate of 39.2 percent, Honolulu would fall into that category.

The scary part is that Honolulu is ranked 59th out of the 317 metro areas surveyed. So no matter how bad things may get in Honolulu, there are 58 cities who will feel it worse than we are!