Sacramento Market 61% Overvalued?

Sacramento is one of 11 markets nationwide with a greater than 50 percent chance of experiencing price declines, according to the latest PMI U.S. Market Risk Index.

Meanwhile, CNNMoney.com has the latest Housing Market Analysis conducted by National City Corp. The report provides "estimates of what the typical house in these markets should cost by examining the town's population densities, local interest rates, and income levels. It also factors in historical premiums and discounts for each area."

According to the report, the Sacramento housing market is 61% overvalued.

Other Central Valley cities ranking high on the list include:

• Merced (77%)
• Stockton (72%)
• Madera (70%)
• Modesto (67%)
• Chico (59%)
• Fresno (58%)
• Redding (56%)
• Bakersfield (51%)
• Visalia (45%)