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Owners.com Reveals Best and Worst Markets for Home Buyers to Get a Deal


December 12, 2017 - ATLANTA, GA

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:

  • 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.

----------------------------------------------------------------------------
MSA Average Average Average Average Average Average
Sales Price Difference Number Loan to Listed Change in
for Single- between of Days Value Inventory Rent (from
Family Sale and Listing Rank Previous
Homes Listing Is on Years)
Price Market
----------------------------------------------------------------------------
1 Chicago- $302,898 -$16,015 108 -10.07% 9,683 +$38
Naperville-
Elgin, IL-
IN-WI
----------------------------------------------------------------------------
2 Virginia $255,737 -$11,959 104 -15.01% 2,703 +$11
Beach-
Norfolk-
Newport
News, VA-NC
----------------------------------------------------------------------------
3 Philadelphia- $272,112 -$13,973 115 -9.17% 5,952 +$11
Camden-
Wilmington,
PA-NJ-DE-MD
----------------------------------------------------------------------------
4 Jacksonville, $255,144 -$15,229 102 -12.84% 2,085 +$13
FL
----------------------------------------------------------------------------
5 Hartford-West $277,086 -$12,105 116 -13.35% 559 +$7
Hartford-
East
Hartford, CT
----------------------------------------------------------------------------
6 New York- $459,566 -$26,568 142 -5.84% 10,728 +$38
Newark-
Jersey City,
NY-NJ-PA
----------------------------------------------------------------------------
7 Miami-Fort $377,700 -$26,998 115 -6.49% 9,961 +$41
Lauderdale-
West Palm,
FL
----------------------------------------------------------------------------
8 San Antonio- $242,243 -$11,794 93 -9.93% 1,742 +$28
New
Braunfels,
TX
----------------------------------------------------------------------------
9 Birmingham- $202,029 -$13,058 107 -10.42% 935 +$20
Hoover, AL
----------------------------------------------------------------------------
10 Houston-The $333,424 -$15,982 98 -7.83% 1,523 +$31
Woodlands-
Sugar Land,
TX
----------------------------------------------------------------------------

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 $14,114 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).
 ---------------------------------------------------------------------------- MSA Average Sales Average Average Percentage of Price for Difference Number of Household Single- between Sale Days Listing Income Family and Listing Is on Market Used toward Homes Price Mortgage Payment ---------------------------------------------------------------------------- 1 Kahului-Wailuku- $814,251 -$35,015 140 41.3% Lahaina, HI ---------------------------------------------------------------------------- 2 Grants Pass, OR $289,328 -$14,524 122 33.8% ---------------------------------------------------------------------------- 3 San Jose- +$26,539 47 44.1% Sunnyvale-Santa $1,219,717 Clara, CA ---------------------------------------------------------------------------- 4 San Francisco- $943,649 +$27,793 62 38.4% Oakland-Hayward, CA ---------------------------------------------------------------------------- 5 Santa Rosa, CA $658,253 -$11,997 79 36.3% ---------------------------------------------------------------------------- 6 San Luis Obispo- $615,394 -$28,646 102 36.4% Paso Robles- Arroyo Grande, CA ---------------------------------------------------------------------------- 7 Urban Honolulu, HI $864,762 -$17,481 93 42.7% ---------------------------------------------------------------------------- 8 Santa Maria-Santa $766,101 -$28,390 100 34.8% Barbara, CA ---------------------------------------------------------------------------- 9 Los Angeles-Long $801,163 -$19,457 87 44.4% Beach-Anaheim, CA ---------------------------------------------------------------------------- 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:

  • 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

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.

About Altisource®
Altisource Portfolio Solutions S.A. (NASDAQ: ASPS) is an integrated service provider and marketplace for the real estate and mortgage industries. Combining operational excellence with a suite of innovative services and technologies, Altisource helps solve the demands of the ever-changing market. Additional information is available at altisource.com.

Investor Contact:
Indroneel Chatterjee
Chief Financial Officer
+352-2469-7988
Indroneel.Chatterjee@altisource.com

Press Contact:

Lindsey Shumway
Manager, Communications
617-728-6735
Lindsey.Shumway@owners.com

MarketWire

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