We intuitively knew this already, but it is good to see that someone did the numbers and proved it.

Overvaluation continues to be the norm in Pacific Coast states, Florida and the Washington D.C. area, according to data from Global Insight. Out of the 330 metro areas examined in its most recent quarterly study, 208 U.S. metros were marked as overvalued--117 documented an increase in overvaluation during the third quarter compared to the second quarter. To determine what house prices should be, Global Insight considered interest rates, household income, population density, current and former house prices and historical data.