Most of the most overvalued markets, according to DeKaser, are in California and Florida. Number one is Santa Barbara, where home prices, at a median of $564,100, are 69 percent higher than they should be.
Close behind is another Golden State city, Salinas, where home prices, at $515,231, are overvalued by 67 percent. Naples, Fla., came in third at $276,827, 62 percent higher.
The only town to crack the top 15 from outside Florida or California was Medford, Ore. The median home price there was $228,201, overvalued by 55 percent.
Of cities with populations of more than one million, San Diego was judged the most overvalued. Homes there average $443,445, according to the report, and are 53 percent higher than they should be. Los Angeles was 48 percent higher, with a median price of $405,668.