The 10 Most Overpriced Housing Markets in America — 5 Are in Texas
The housing market has undergone dramatic changes over the last few years, and things are shifting again. It’s no longer the “extreme seller’s market,” according to Yawar Charlie, the director of estates at Christie's International Real Estate of Southern California. But it’s not fully a buyer’s market, either.
“Right now, we’re in a very selective, affordability-driven market,” he said.
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The numbers back him up. The National Association of Realtors reported that existing-home sales rose 3.2% in May 2026, yet elevated rates keep weighing on affordability. The national median existing home price hit $429,300 that month, with about 4.5 months of inventory — a shift Charlie said points to a market moving in a new direction. "Buyers have more choices, sellers cannot just name any price and expect a bidding war, and everyone is doing the math a lot more carefully," he said.
Navigating the market isn’t easy, so to help you make informed decisions, MoneyLion analyzed data from Zillow's March 2026 report to identify the 10 most overpriced housing markets.
1. Santa Maria, California
Average home value (2026): $1,055,812
2026 median list price: $1,690,111
Difference between median list price and home value ($): $634,299
Difference between median list price and home value (%): 60.1%
2. Crestview, Florida
Average home value (2026): $408,006
2026 median list price: $647,445
Difference between median list price and home value ($): $239,439
Difference between median list price and home value (%): 58.7%
3. Corpus Christi, Texas
Average home value (2026): $220,504
2026 median list price: $318,666
Difference between median list price and home value ($): $98,163
Difference between median list price and home value (%): 44.5%
4. Brownsville, Texas
Average home value (2026): $199,181
2026 median list price: $277,005
Difference between median list price and home value ($): $77,824
Difference between median list price and home value (%): 39.1%
5. Longview, Texas
Average home value (2026): $216,659
2026 median list price: $295,533
Difference between median list price and home value ($): $78,874
Difference between median list price and home value (%): 36.4%
6. Tuscaloosa, Alabama
Average home value (2026): $220,341
2026 median list price: $299,911
Difference between median list price and home value ($): $79,570
Difference between median list price and home value (%): 36.1%
7. Salinas, California
Average home value (2026): $862,213
2026 median list price: $1,167,093
Difference between median list price and home value ($): $304,881
Difference between median list price and home value (%): 35.4%
8. McAllen, Texas
Average home value (2026): $194,151
2026 median list price: $260,000
Difference between median list price and home value ($): $65,849
Difference between median list price and home value (%): 33.9%
9. Shreveport, Louisiana
Average home value (2026): $175,093
2026 median list price: $232,544
Difference between median list price and home value ($): $57,451
Difference between median list price and home value (%): 32.8%
10. Tyler, Texas
Average home value (2026): $268,861
2026 median list price: $356,317
Difference between median list price and home value ($): $87,456
Difference between median list price and home value (%): 32.5%
Practical Advice for Buyers, Renters and Sellers
Whether you’re buying, renting or selling, there are challenges to face, but it’s not hopeless.
For buyers in the market, Charlie advised against trying to time it perfectly, as that’s how people end up on the sidelines.
“If the home works, the payment works and you have a long-term plan, there may be a real opportunity right now — you can often negotiate more today than you could during the pandemic boom, whether that is credits, repairs, rate buydowns or better terms.”
If you’re looking to rent, Charlie recommended advocating for yourself since rent growth has cooled and “many landlords are offering concessions again, especially in buildings or markets where they are trying to fill vacancies.”
And for sellers, this is no longer a market where you can expect offers thousands over the asking price. “The homes that are priced correctly, shown beautifully and easy for buyers to understand are still selling — the ones that are overpriced or require too much imagination are sitting.”
As the housing market evolves, understanding local market conditions, setting a realistic budget and negotiating when possible can help you avoid overpaying, even in some of the country's hottest housing markets.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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