Owners.com, an innovative technology-enabled brokerage, released its inaugural 2017 Market Recap data study revealing the top 10 buyer, seller and overheated metropolitan statistical areas (MSAs).
The study uncovered that within the top 10 buyer markets, home buyers can generally expect to find more affordable options with less competition:
- The top 10 buyer markets showed an average sales price of $297,794, which was $35,330 below the national average. Homes sold for an average of $16,375 below the listing price.
- Prices for both buyers and renters remained affordable in these areas as the average monthly rent increased from year to year by $24, only $4 more than the national average.
- Average loan-to-value is -10% lower than the national average of -6.04%, indicating that properties in these MSAs may have been heading toward foreclosure or short sale, increasing the opportunity to get a good deal.
- With less buyer competition, homes in these markets took an average of two weeks longer to sell than the national average.
The Owners.com analysis identified seller markets where there are more buyers than homes for sale. The 10 markets were significantly over the national average and the lack of inventory drove up prices. More specifically:
- The average sales price of $544,102 was over $200,000 above the national average.
- On average, homes sold for only $200 less than their listing price.
- Inventory was limited and homes sold almost a month quicker than the national average.
- Additionally, rental prices increased 95% more than the national average increase.
Owners.com 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:
- In the top 10 overheated markets, homes sold for $777,665, over twice as much as the average U.S. home price.
- Homes sold faster (by three days) in these markets than the nation’s average.
- Listing prices were inflated and were on average $14,114 less than the sale price.
- Residents in these markets spent twice as much income toward their mortgage payment as the national average. (National average is 20.8 percent; overheated markets average is 39.1 percent).
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of Owners.com, Altisource or any other Altisource® business or entity. The foregoing content is not intended to constitute, and in fact does not constitute, financial, investment, tax or legal advice by the author, Owners.com, Altisource or any other business or entity.
People are also reading