Florida occupies seven rankings on a new list of the top 10 most overvalued housing markets in the country, according to the newly published “The Top 100 U.S. Housing Markets.”
The new report said Florida’s Cape Coral metro is the most overvalued housing market in the country, with buyers paying a 47.99% premium on the typical home. Other measured metropolitan areas in Florida that also made the top 10 were No. 3 Tampa, where buyers paid a 42.81% premium for a home; No.4 Palm Bay (42.60%); No. 6 Lakeland (41.96%); No. 7 North Port (41.74%); No.8 Deltona (39.96%); and No. 9 Orlando (39.83 percent).
The three non-Florida metros on the top 10 list were No. 2 Atlanta (45.74%), No. 5 Detroit (42.51%) and No. 10 Knoxville, Tennessee (39.38%).
“Most cities around the country have seen prices come back in line with their local long-term pricing trends or have witnessed a slight cooling in prices over the last few months,” said Dr. Ken H. Johnson, real estate economist at Florida Atlantic University’s College of Business. “That hasn’t been the case in Florida as prices in the state have remained robust, causing premiums to rise throughout the state.”
“The Top 100 U.S. Housing Markets” is produced by Johnson and fellow researcher Dr. Eli Beracha, director of Florida International University’s Hollo School of Real Estate.
“Without these higher interest rates, we would see Florida’s prices reaccelerate because there is so much demand relative to the supply of units,” Beracha said. “As well, the influx of high-income movers to Florida is putting upward pressure on prices. We are witnessing a transition in Florida’s economy and our housing markets around the state are experiencing growing pains from this transition.”