A January 2023 report out of Florida Atlantic University (FAU) has found that three North Carolina housing markets rank among the most inflated in the country. The report is called the Beracha and Johnson Housing Market Ranking and it’s a part of the FAU Real Estate Initiative. These rankings include the top 100 housing markets aground the country ranked on their degree of overpricing/underpricing. They state that open-source housing price indices (HPIs) were used to create the list.
So what does it mean? “A positive score represents a premium, implying that the average property in a metro is selling above its historical implied price.” Whereas, “a negative score represents a discount, implying that the average property in a metro is selling below its historical implied price. ” Following each city on the ranking below you will see the degree of premium as a percentage. This represents the difference between current prices for a market and where prices should be based on statistical modeling. This was done by using data from Zillow.
I knew it wasn’t a good time to try and purchase a house in North Carolina. But I didn’t know it was this bad! Charlotte was the worst landing in the top 5. The Queen City was joined by two other North Carolina housing markets in the Top 20. These rankings are updated monthly, it will be interesting to see how North Carolina trends throughout 2023.