Researchers at Florida Atlantic University have published the top 100 markets for home overpricing and underpricing—and SoCal is well represented!
The Beracha and Johnson Housing Market Ranking is an extension of Case-Shiller and other housing prices indices. A positive score represents a premium, indicating 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 best “value” shopping, per the study, is in Urban Honolulu, Hawaii, which had the largest discount score at -4.93 percent. The only other markets to score in the negative, or discount, zone were Virginia Beach, Baltimore, New York and Baton Rouge.
For the study, researchers lumped Los Angeles, Long Beach and Orange County into one region, landing at no. 12 on the list, with a score of 5.37 percent. Ventura was close behind at no. 15, with San Francisco at no. 17. Essentially, the study indicates that these markets, while selling at a premium, are only slightly above the historical implied price.
Where are the least bargains in the country? Boise took that unfortunate top spot, with a score of 80.64 percent in terms of overpricing. Austin, Ogden and Provo, Utah and Detroit rounded out the top five.
Stockton was the only California market to land in the overpriced top 20, with a score of 38.50 percent.
For more on the study, click here.