Real estate brokerage Owners.com released its 2018 Market Recap data study revealing the top 10 buyer metropolitan statistical areas (MSAs) and overheated MSAs. Virginia Beach, Va., Hartford, Conn., and Philadelphia, came out on top for buyers seeking homes that sold below the listing price and where there was more available inventory. Owners.com also revealed what it considers to be the most overheated markets in the U.S.
The data showed nearly all of the overheated markets were in California, with San Jose, San Francisco and Santa Cruz as the top three. On average, residents in the top 10 overheated markets are spending nearly half of their income on their mortgage and on average, homes sold in these markets for twice as much as they did nationally.
“Affordability remains a challenge in many markets across the country, but there are still areas where buyers can find affordable options,” said Dario Cardile, vice president, growth at Owners.com. “Smart buyers should look to work with a brokerage that offers the support of experienced agents together with personalized tech-based tools that can help them find the right home, at the right price for their budget.”
To identify the buyer markets, Owners.com analyzed a variety of factors including the percentage of listed properties sold, difference between the listing and sale price, average number of days on market, and average listed inventory count. The study uncovered that within the top 10 buyer markets, home buyers could generally expect to find more affordable housing options with less competition. More specifically:
| MSA | Median Sales Prices for Single-Family Homes | Average Difference Between Sale and Listing Price (Percent Difference) | Average Number of Days Listing is on Market | Percentage of Properties with Negative Equity | Average Listed Inventory | Average Change in Rent (from Previous Year) | Percentage of Listed Properties Sold | |
| National | $234,300 | -$11,650 (-8%) |
60 | 9.9% | N/A | +$40 | 34% | |
| 1 | Virginia Beach-Norfolk-Newport News, VA-NC | $245,000 | -$8,376 (-3%) |
111 | 12.8% | 13,482 | +$7 | 23% |
| 2 | Hartford-West Hartford-East Hartford, CT | $235,000 | -$7,892 (-3%) |
110 | 10.6% | 4,329 | +$15 | 25% |
| 3 | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | $240,000 | -$9,148 (-4%) |
113 | 11% | 30,660 | +$9 | 42% |
| 4 | Orlando-Kissimmee-Sanford, FL | $250,000 | -$9,923 (-4%) |
104 | 6.2% | 16,125 | +$33 | 37% |
| 5 | Tampa-St. Petersburg-Clearwater, FL | $215,000 | -$9,905 (-5%) |
95 | 6.4% | 21,399 | +$40 | 38% |
| 6 | Cleveland-Elyria, OH | $148,500 | -$7,790 (-5%) |
97 | 12.1% | 6,496 | +$13 | 42% |
| 7 | Jacksonville, FL | $220,000 | -$9,873 (-4%) |
103 | 9.3% | 6191 | +$24 | 43% |
| 8 | Miami-Fort Lauderdale-West Palm Beach, FL | $339,900 | -$16,204 (-5%) |
114 | 4.8% | 27,512 | +$67 | 29% |
| 9 | Chicago-Naperville-Elgin, IL-IN-WI | $247,500 | -$9,885 (-4%) |
105 | 9.7% | 26,123 | +$28 | 46% |
| 10 | Pittsburgh, PA | $157,000 | -$7,137 (-5%) |
105 | 5.4% | 6,387 | +$28 | 40% |
Owners.com also identified what it considers the most overheated markets in the U.S., where residents are spending more than 33 percent of their household income toward their mortgage payment. To uncover the most overheated markets, analysts looked at all MSAs across the U.S. The data showed that:
| MSA | Average Median Sales Price for Single-Family Homes | Average Difference between Sale and Listing Price | Average Number of Days Listing Is on Market | Percentage of Household Income Used toward Mortgage Payment | |
| National | $234,300 | -$11,650 | 60 | 24.7% | |
| 1 | San Jose-Sunnyvale-Santa Clara, CA | $1,290,000 | +$10,745 | 51 | 55.9% |
| 2 | San Francisco-Oakland-Hayward, CA | $940,000 | +$12,065 | 55 | 47.1% |
| 3 | Santa Cruz-Watsonville, CA | $826,000 | -$5,040 | 70 | 52.8% |
| 4 | Los Angeles-Long Beach-Anaheim, CA | $680,000 | -$5,886 | 83 | 49.5% |
| 5 | San Diego-Carlsbad, CA | $620,000 | -$7,602 | 74 | 41.5% |
| 6 | Santa Rosa, CA | $625,000 | -$5,719 | 87 | 39.6% |
| 7 | Boulder, CO | $560,000 | -$9,725 | 81 | 35.3% |
| 8 | Napa, CA | $659,000 | -$7,407 | 91 | 38.8% |
| 9 | Oxnard-Thousand Oaks-Ventura, CA | $656,000 | -$11,258 | 86 | 40.3% |
| 10 | Salinas, CA | $579,000 | -$11,923 | 91 | 41.4% |
For the buyer’s markets, Owners.com identified and analyzed MSAs with over one million people and for the overheated markets, Owners.com analyzed all MSAs. Data was retrieved from October 31, 2017 through October 31, 2018. To identify and rank the top 10 markets for buyers, Owners.com weighted seven different metrics and summed them into a score.
To identify and rank the top 10 overheated markets, Owners.com weighted three metrics and summed them into a score. The data was sourced from public property data, aggregated public record data and Census Data. The metrics and their weights in the total score were as follows:
The score for the top 10 home buyer markets was comprised of these metrics:
The score for the top 10 overheated markets was comprised of these metrics:
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