California is home to some of the most overpriced housing markets in the nation, a new housing study reveals.
A total of 11 California cities landed on a list of the top 100 housing markets in the United States created by Florida Atlantic University.
Every month, the university uses data from Zillow and other sources to rank the cities’ housing markets as overpriced or underpriced based on the average home value compared to the expected price.
Atlanta led April’s Beracha and Johnson Housing Market Ranking with a 41.3% average housing premium. This means homes in the Georgia city are being sold for 41.3% above what they should be priced.
Detroit took second place with a housing premium of 40.8%, followed by Cape Coral, Florida, in third place with housing premium 37.6%.
Only one California city cracked the top 20 of the Beracha and Johnson Housing Market Ranking.
Modesto landed at No. 17 on the list with a housing premium of 32%.
“It is hoped that knowing the premium or discount … will enable more informed decision making by buyers, sellers, real estate professionals and (policymakers) within that market,” researchers from Florida Atlantic University wrote on the site.
California cities with the most overpriced housing markets
These California cities were among the top overpriced metropolitan areas in the country as of April 30, according to Florida Atlantic University’s Beracha and Johnson Housing Market Ranking:
No. 17 | Modesto
- Average home value: $466,035
- Expected home price: $353,206
- Average housing premium: 31.94%
No. 36 | Stockton
No. 45 | Riverside
No. 50 | San Diego
No. 52 | Bakersfield
No. 58. | Fresno
No. 78 | Sacramento
No. 82 | Oxnard
No. 85 | Los Angeles
No. 86 | San Jose
No. 98 | San Francisco
How did Florida Atlantic University come up with rankings?
Florida Atlantic University used data from Zillow and other housing market data providers to analyze the top 100 most overpriced or underpriced metropolitan areas in the U.S.
Locations were then ranked according to their average housing premium or discount.
The Beracha and Johnson Housing Market Ranking is compiled monthly.
