Home News Out of 100 housing markets in America, this is the least overpriced, study finds

Out of 100 housing markets in America, this is the least overpriced, study finds

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Baltimore is the least overvalued housing market, new research reveals.

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Despite rising mortgage rates, home prices have risen sharply over the past year and professionals say they could rise further. (See here the lowest mortgage rates you can qualify for). However, some markets are currently other It is far more overrated than the market. University.

They developed a A methodology that uses Zillow data to score the top 100 of the highest and lowest largest cities in the United States. “For 100 markets, we use monthly data from the Zillow Home Value Index (ZHVI) to create long-term trends in home prices, from which we estimate the average expected market price, and use this estimate as the actual ZHVI value ( Compare with (premium). Is the percentage between the two numbers, “says Johnson.

The first thing to note is that all 100 of the largest metros are sold at a premium, but some metros have a very small premium. Indeed, their data show that Baltimore is the home sold at the lowest premium and buyers are paying a premium of about 2% on real estate. This is followed by the picturesque Honolulu 2.11% and New York City 2.83%.

Cheapest housing market

market

premium

Baltimore

2.03%

Urban Honolulu

2.11%

new york

2.83%

Washington DC

3.26%

Virginia beach

3.46%

Stanford

7.69%

Baton Rouge

8.05%

New Orleans

8.33%

Albany

8.54%

Hartford

9.19%

So why aren’t homes in these markets sold at higher prices? Johnson says this may be reminiscent of the last housing recession. At that time, these were some of the subways that were the hardest hit in terms of price declines. “These markets and other battered markets like Miami seem to have learned and resulted in more aggressive price negotiations by the locals. Somehow, I tricked me once and tricked you. Be ashamed, trick me twice and be ashamed of me, “says Johnson.

See the lowest mortgage rates you can qualify here..

On the other hand, in some markets, real estate is sold at a large premium, professionals say. The city of Boise, Idaho, at the top, is ranked as the most expensive metro with a premium of 75.18%. What is that? It may be related to people moving from densely populated areas to places like Boise. Not only is Boise steadily increasing in population, but rising wages and many outdoor facilities in the western part of the mountain are creating Boise-like places. A bet you can trust for investors.

“For months, Boise has been the highest-priced housing market in the United States, and the market has been the most depressed. Therefore, we expect rising mortgage rates to first lower Boise’s prices and premiums. Is rational, “says Johnson. The S & P Core Logic Case-Shiller Home Price Index reveals that increased demand for second homes favors small towns, and in 2021 Boise saw real estate valued. twenty two%From December 2020 to December 2021, average homeowner capital increased by $ 64,000.

The most expensive housing market

market

premium

Boise city

75.18%

Austin

66.29%

Ogden, Utah

63.33%

Las Vegas

59.55%

Atlanta

55.96%

Phoenix

55.5%

Spokane, Washington

54.72%

Provo, Utah

54.32%

Salt Lake City

53.77%

Charlotte

52.54%

“Supply and demand for housing units is the fundamental driving force for prices in all markets. Demand can change rapidly, but supply for housing units cannot change so rapidly. Once the relative position of the market in the rankings is established, it is difficult to change in a few months, “says Johnson. However, more important than market rankings is the comparison of current and past premium performance. “You can learn lessons,” says Johnson.

Of course, this isn’t the only list of overrated housing markets. CoreLogic I saw the overvalued housing market in March. Not only did the company reveal that the rise in home prices in 2021 surged 15% from 2020, but this is three times the average rate 10 years ago, and many markets are overrated. I also found that it looks like. Indeed, it called Destin, Florida. Homo Sassa Springs, Florida; Prescott, Arizona; Lake Havasu City, Arizona; Punta Gorda, Florida; Naples, Florida; Austin, Texas. CoreLogic’s market indicator tool uses benchmarks to show if metro home prices are high compared to local household income. If it is high, the market is considered overvalued.

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