Boca Raton, Florida — As of June, homes were overvalued by an average of 20% in major Florida cities.
A study conducted by researchers at Florida Atlantic University and Florida International University identified five major cities in Florida where homes were sold more than they were worth.
These cities are Jacksonville, Orlando, Tampa, Miami and Tallahassee.
Of the five, Tampa ranks highest with a 32% premium.
Despite rising home prices, research suggests that Florida’s housing market will not collapse as prices are expected to level off in the future.
Dr. Ken H. Johnson, a real estate economist and vice dean of FAU’s Business College, believes homeowners will stick to paying high premiums after home prices level off.
“Trees don’t grow in the sky, and house prices don’t grow,” Johnson said. “We’re not approaching the peak of the last housing cycle, but we need to be careful. Moving away from a clearly overrated home may be the best thing buyers can do in this kind of market. Hmm.”
Eli Beracha, a professor at the Hollo School of Real Estate at the FIU, suggested that people should rent space to live for the time being.
“”Our survey on purchases vs. rent is“On the current average, renting and reinvesting is a particularly good wealth-creating strategy. More people renting and reinvesting will help ease current price pressures,” Bellacha said. Is a good thing. “
Florida real estate is estimated to be overvalued by 20%
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