Owners.com Reveals Best and Worst Markets for Home Buyers to Get a Deal
Owners.com focused on
"With reduced inventory and appreciating home prices an issue in much of the country, real estate market conditions are challenging," said
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:
- The top 10 buyer markets showed an average sales price of
$297,794, which was $35,330below the national average. Homes sold for an average of $16,375below 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 $4more 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.
of Days Listing
Rent (from Previous
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:
- 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
$14,114less 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).
between Sale and Listing
Days Listing Is on Market
Used toward Mortgage Payment
Owners.com identified all MSAs with over one million people and retrieved data from
The score for the top 10 home buyer markets was comprised of these metrics:
- Average price difference between sold and listing prices: 30 percent
- Negative LTV: 25 percent
- Total inventory left on market: 20 percent
- Days on market: 15 percent
- Monthly rental cost change from previous year: 10 percent
The score for the top 10 overheated markets was comprised of these metrics:
- Percentage of household income used toward mortgage payment: 50 percent
- Days on market: 30 percent
- Average price difference between sold and listing prices: 20 percent
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.
Chief Financial Officer
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