Local real estate agents and others agree property values have swelled, but the notion that this is the most overpriced place to live in the country is unrealistic.

The magazine, which went on sale Tuesday, scored Essex County at No. 1, saying it has the highest cost of living, lowest salaries, least job growth and least affordable housing.

These combined factors placed Essex County as the "most overpriced place to live," despite its median home price of $373,750, according to the article. In comparison, San Francisco ranked No. 2 and has a median home price of $720,400; San Jose, Calif., came in as the third most overpriced at $746,800; Honolulu checked in at No. 4 with $625,000.

"I don't think you can make any comparison between San Francisco and the Newburyport area," said Dennis Keating, a Coldwell Banker Realtor and president of the Greater Newburyport Association of Realtors.

Keating said he was surprised by the ranking of Essex County when other areas of the state - such as Weston, Newton and Wellesley - rank among the most expensive zip codes in the country.

"Real estate over the long run is still a great investment," Keating said. "You have to put it in perspective. There are still good values around here. Greater Newburyport is a place folks want to come to."

Bill Piercey, president of the Greater Newburyport Chamber of Commerce and Industry, said overpriced is not the way to describe the region.

"It's high, but it's also a desired location," Piercey said.

Piercey says the region's low ranking on housing and job growth is related to density. Much of the region is built out, leaving little room for new homes and large industries.

"Essex County is more prominent for small business," Piercey said. "All of Massachusetts needs to deal with job growth, job creation and affordable housing. And those are not easy to overcome."

Tricia White, real estate agent with Century 21 North Shore, which serves all of Essex County, said she does come across some mind-boggling prices around here - like the $10 million mansion for sale in Manchester-by-the-Sea or a house priced in the $3 million range in the Beverly Farms area.

But compared to other places in the country, she finds it hard to believe that Essex County has the dubious honor of being at the top of the heap when it comes to overpriced digs.

"We have someone in the office who came back from California with house listings where a two-bedroom bungalow was $900,000 because it had a water view," White said. "You don't see prices that high for something comparable around here."

Newburyport Economic Development Director Peter Abair said rankings like Forbes' article can be deceiving. Abair said there are lots of surveys in which Massachusetts tops the list in a good way - from its science and technology education to the number of people with college degrees.

"It's not as simple as you get what you pay for," Abair said. "There are advantages here other parts of the road don't have. Certainly we have to do something for housing affordability and available jobs across a range of incomes. People who live here understand the market better than the people at Forbes Magazine."

But that's no consolation to people like Jerry O'Connor, who with his wife, Lisa, owns the Carriage Christian and Family Books Store in Amesbury. He said he is not surprised that living in the area is considered so expensive.

"It is too high," he said. "Taxes are too high, rent is too high, everything is too high."

Staff Writers Stephanie Chelf, Christina Torode and Salee-Marie Johnson contributed to this story.

Pricey property

Town 2001 ($) 2005 ($) % change

Amesbury 246,950 335,000 35.65

Georgetown 313,500 400,000 27.59

Groveland 289,450 375,000 29.56

Merrimac 237,500 362,500 52.63

Newbury 300,000 444,000 48.00

Newburyport 340,000 450,000 32.35

Rowley 299,900 432,500 44.21

Salisbury 180,000 322,500 79.17

West Newbury 392,450 482,500 22.95