A home is only truly overpriced if it is not selling. Price is set by what a buyer is actually willing to pay. When comparable homes in an area keep closing at a given level, the market is telling you that level is the real value, however steep it looks against an older benchmark or what the place "should" cost. A listing that sits for months with no offers is overpriced. One that draws offers and closes is priced to the market, even in an expensive area. Usually the worry underneath "that house is overpriced" is where prices go next and whether you are buying near a top. That is a fair concern, and nobody can promise which way prices move in the short run. What we can say: a seller has little reason to cut while homes at that price keep selling, and in high-cost areas the number that feels shocking is often just the entry-level price point for that market. To protect yourself: - Pull recent sold comps for that specific neighborhood, actual closings rather than list prices. - Make sure the payment fits your budget. - Buy on a horizon long enough that a short-term dip does not sink you. Over long horizons, prices in desirable areas have historically trended upward (the FHFA and Case-Shiller long-run indices show the pattern), which is why we steer away from trying to call the exact top.