BOCA RATON Fla., July 21, 2022 (GLOBE NEWSWIRE) — After a decade of historic home price gains, the U.S. housing market has finally slowed, and June figures show it may already have peaked.
Each month since last summer, researchers at Florida Atlantic University and Florida International University have ranked the most overvalued housing markets by analyzing their premiums – the percentage above the long-term pricing trends that buyers must pay in order to buy a property. The larger the premium, the more overpriced a market is.
In June, premiums declined in 12 markets: Los Angeles; San Francisco; Seattle; San Diego; Denver; Pittsburgh; Portland, Oregon; Austin, Texas; Ventura and Stockton, California; Boise, Idaho; and Ogden, Utah.
Until now, only Boise and Pittsburgh have experienced lower monthly premiums. With 10 more markets following suit, it suggests that home price moderation is spreading and likely to lead to falling values across much of the country, according to Ken H. Johnson, Ph.D., an economist in FAU’s College of Business.
“Premium declines are an early warning sign that prices are leveling off and likely on the way back down,” he said. “We will look back at this point as the starting gun for the down slope in our next housing cycle.”
Johnson believes further evidence of a peak comes from falling average home prices from May to June in seven markets: San Jose, California (by $13,091); Austin ($3,010); Seattle ($1,922); San Francisco…
