Southern California home prices may seem insanely high, but two yardsticks of their underlying values suggest they’re not as crazy as elsewhere in the nation. Rather, these studies show the overvaluation of Southern California homes compared with historical patterns is not massive on a national scale. Homes in San Diego, worth $947,000, were 24 percent too high, by this math — the No. Fitch sees both San Francisco and San Jose as risky as San Diego — 15 percent to 19 percent overvalued. But FAU professors have San Jose with their 15th lowest risk (14 percent too high) and San Francisco with the third-smallest (2 percent too high).
