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.

 

2021 Press Releases


Overvalued Markets

Home Prices Reaching ‘Inflection Point’ in Overvalued Markets

By | 12/02/2021

Home prices continue to rise across the country and are poised to flatten in some metropolitan areas, according to a ranking of the most overvalued U.S. housing markets by professors at Florida Atlantic University and Florida International University.

Housing Market Tool

New Index Provides Insight into Possibility of Housing Crash

By | 11/02/2021

Florida Atlantic University’s College of Business launched a new, free website tool to help consumers, lenders and real estate professionals make more informed home buying decisions. 

Housing October

Alternative to Case-Shiller Index Shows Home Prices Across U.S. Continue to Rise at Near-record Rates

By | 10/26/2021

Rising premiums in many of the nation’s most overvalued housing markets suggest that homebuying remains red hot even as signs point to a looming price correction, according to a new ranking of the 100 largest U.S. housing markets.

 

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