Rick Palacios Jr.: Methodology for analyzing housing market overpricing and underpricing

Rick Palacios Jr.: Methodology for analyzing housing market overpricing and underpricing
Market index analyzes housing affordability

Rick Palacios Jr. details the methodology behind the Burns Under/Overpriced Market Index. The index measures the gap between a housing market’s current housing-cost-to-income ratio and its intrinsic, longer-term norm on a market-by-market basis.

This approach aims to identify whether housing costs in a given market are overpriced or underpriced relative to historical norms.

Palacios Jr. recently reported that national housing affordability is improving slowly, citing stable home prices and rising incomes. In a separate note, he observed that Warsh is leading the Federal Reserve during a rare economic soft landing. These updates provide added perspective on current housing market conditions.

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