Fifth-most-overvalued market: San Jose, Calif.
How much prices exceed fundamentals by: 2.9%
Asking prices for homes in Silicon Valley's biggest city rose 22.9% over the past year even as rents fell 4.8%, helping push property values 2.9% above market fundamentals.Kolko says strong tech-job growth is driving San Jose's property values beyond what's justified. But he believes the city is a long way away from a new bubble. After all, Trulia estimated San Jose home prices got as high as 59% above market fundamentals in 2005.