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Housing Market Valuations in U.S. Metro Areas: A Back Study for Downside Risk after Two Recessions

Updated: Sep 20

September 8, 2022


Introduction:

The methodology and rationale for using valuation metrics as predictors of housing market downside risk were described in the article Real Estate Market Valuations: Predicting Downside Risk, A Back Study. Housing Market valuations serve a measure for the degree to which a market may be over-, under- or fairly valued, and its subsequent downside risk following a recession. The back study was performed for the Global Financial Crisis and covered all U.S. states and ~2700 U.S. counties.