Beracha and Johnson Housing Market Ranking - Paul Owers


The Top 100 U.S. Housing Markets...

A major goal of the FAU Real Estate Initiative is to provide information that will allow for more informed real estate decision making. To that end, we have developed a ranking of the top 100 housing markets around the country and will provide it monthly as the Beracha and Johnson Housing Market Ranking

Each month, we will rank the top 100 markets based on their degree of overpricing/underpricing using open source housing price indices (HPIs). A positive score represents a premium, implying that the average property in a metro is selling above its historical implied price. A negative score represents a discount, implying that the average property in a metro is selling below its historical implied price. The degree/amount of a premium or discount is also provided in terms of a percentage difference between current prices for a market and where prices should be based on statistical modeling.

The Beracha and Johnson Housing Market Ranking is an extension of Case-Shiller and other readily available housing prices indices. HPIs provide a methodology to calculate what the average property price is within a given market at a given time. This enables an understanding of the level of current housing prices and the ability to estimate property appreciation. However, HPIs do not provide the degree to which the average property in a particular housing market is selling above or below its implied prices. The Beracha and Johnson Housing Market Ranking produces this calculation and in doing so provides additional information beyond Case-Shiller and other HPIs.

It is hoped that knowing the premium or discount for which housing is selling, on average, in a given top 100 metro will enable more informed decision making by buyers, sellers, real estate professionals, and policy makers within that market.

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Press Releases

15 Housing Markets

Study: 15 Housing Markets Overvalued by More Than 50 Percent

By | 05/31/2022

The high cost of housing across the country is playing out in once-remote markets and major metropolitan areas, making homeownership unattainable for many Americans and a risky bet for others.

Overvalued Housing Markets

Strong Demand for Homes Bolsters Prices, Forcing Buyers to Overpay

By | 04/26/2022

Home prices in the overwhelming majority of the nation’s largest housing markets continue to rise despite the Federal Reserve’s move to raise mortgage rates in hopes of curtailing runaway demand, according to researchers at FAU and FIU.

Housing prices increase

U.S. Housing Prices Still Rising Along with Mortgage Rates

By | 03/29/2022

When mortgage rates rise, home prices tend to level off or decline because fewer people can afford to buy. Experts are counting on that adage to help cool the nation’s torrid housing market.