Chicago, IL tops list of affordable major real estate markets while buyers will spend big on the West Coast
ATLANTA, GA--(Marketwired - December 12, 2017) - Owners.com, an innovative technology enabled real estate brokerage, today released its inaugural 2017 Market Recap data study revealing the top 10 buyer and overheated metropolitan statistical areas (MSAs). For buyers seeking less competition and more affordable homes sold below the listing price, Chicago-Naperville-Elgin, IL-IN-WI came out on top, followed by Virginia Beach-Norfolk-Newport News, VA-NC and Philadelphia-Camden-Wilmington, PA-NJ-DE-MD. To identify the most overheated markets, Owners.com looked at MSAs where buyers could expect to spend more than one-third of their income on their mortgage. The data showed that Kahului-Wailuku-Lahaina, HI; Grants Pass, OR and San Jose-Sunnyvale-Santa Clara, CA were the most overheated markets, where homes typically sold faster and for twice as much money than the national average.
Owners.com focused on U.S. metropolitan statistical areas (MSAs) with more than one million people. The study analyzed a variety of factors within the qualifying MSAs, including home sale price, difference between the listing and sale price, average number of days on market and average listed inventory count.
"With reduced inventory and appreciating home prices an issue in much of the country, real estate market conditions are challenging," said Phil Karp, Senior Manager of Brokerage Services at Owners.com. "Many markets have become overheated, but there are still markets where smart buyers can find more affordable homes. Savvy buyers will realize greater savings if they leverage modern brokerages like Owners.com that provide local expert real estate agents who help them make data-driven purchase decisions."
Top 10 Home Buyer Markets
The study uncovered that within the top 10 buyer markets, home buyers can generally expect to find more affordable options with less competition:
MSA | Average Sales Price for Single- Family Homes |
Average Difference between Sale and Listing Price |
Average Number of Days Listing Is on Market |
Average Loan to Value Rank |
Average Listed Inventory |
Average Change in Rent (from Previous Years) |
||||||||
1 | Chicago-Naperville-Elgin, IL-IN-WI | $302,898 | -$16,015 |
108 | -10.07% | 9,683 |
+$38 | |||||||
2 | Virginia Beach-Norfolk-Newport News, VA-NC | $255,737 | -$11,959 |
104 | -15.01% | 2,703 |
+$11 | |||||||
3 | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | $272,112 |
-$13,973 | 115 | -9.17% | 5,952 | +$11 | |||||||
4 | Jacksonville, FL | $255,144 | -$15,229 | 102 | -12.84% | 2,085 | +$13 | |||||||
5 | Hartford-West Hartford-East Hartford, CT | $277,086 | -$12,105 | 116 | -13.35% | 559 | +$7 | |||||||
6 | New York-Newark-Jersey City, NY-NJ-PA | $459,566 | -$26,568 | 142 | -5.84% | 10,728 |
+$38 | |||||||
7 | Miami-Fort Lauderdale-West Palm, FL | $377,700 | -$26,998 | 115 | -6.49% | 9,961 | +$41 | |||||||
8 | San Antonio-New Braunfels, TX | $242,243 | -$11,794 | 93 | -9.93% | 1,742 | +$28 | |||||||
9 | Birmingham-Hoover, AL | $202,029 | -$13,058 |
107 |
-10.42% | 935 | +$20 | |||||||
10 | Houston-The Woodlands-Sugar Land, TX | $333,424 | -$15,982 | 98 | -7.83% | 1,523 | +$31 |
Top 10 Overheated Markets
Owners.com also identified what it considers the most overheated markets, where residents are spending more than 33 percent of their household income toward their mortgage payment, and found that:
MSA | Average 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 |
||||||
1 | Kahului-Wailuku-Lahaina, HI | $814,251 |
-$35,015 | 140 | 41.3% | |||||
2 | Grants Pass, OR | $289,328 | -$14,524 |
122 | 33.8% | |||||
3 | San Jose-Sunnyvale-Santa Clara, CA | $1,219,717 |
+$26,539 | 47 | 44.1% |
|||||
4 | San Francisco-Oakland-Hayward, CA | $943,649 | +$27,793 | 62 | 38.4% | |||||
5 | Santa Rosa, CA | $658,253 | -$11,997 | 79 | 36.3% | |||||
6 | San Luis Obispo-Paso Robles-Arroyo Grande, CA | $615,394 | -$28,646 | 102 | 36.4% | |||||
7 | Urban Honolulu, HI | $864,762 | -$17,481 | 93 | 42.7% | |||||
8 | Santa Maria-Santa Barbara, CA | $766,101 | -$28,390 | 100 | 34.8% | |||||
9 | Los Angeles-Long Beach-Anaheim, CA | $801,163 | -$19,457 | 87 | 44.4% | |||||
10 | Napa, CA | $804,032 | -$29,960 | 96 | 38.8% |
Methodology
Owners.com identified all MSAs with over one million people and retrieved data from October 31, 2016 through October 31, 2017. Owners.com used five metrics to identify and rank the top 10 buyer markets and three metrics for the top 10 overheated markets. These metrics were weighted and summed into a score. The national and market data were sourced from public property data, and aggregated data were sourced from First American and Census Data. The weights for each metric 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:
About Owners.com®
Owners.com is a tech-enabled real estate brokerage that handles all key aspects of the home buying and selling experience on one platform. It provides a superior experience and savings through right-sized commission structures, smart digital tools and personalized service from local agents. It's this formula that can save consumers thousands at closing. For more information or to contact a local Owners.com real estate agent, visit Owners.com or follow them on facebook.com/ownerscom and twitter.com/ownersdotcom.
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