Sunday, May 19, 2024

Study by FAU finds Tampa housing market to be the most overvalued in Florida

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Florida Dominates List of Most Overvalued Housing Markets in the U.S.

The housing market in Florida continues to be a hot topic, with new data from Florida Atlantic University revealing that the state has nine of the Top 15 most overvalued housing markets in the U.S. The Tampa Bay area, in particular, is home to the most overvalued housing market in the state.

According to the data, homebuyers in Florida are paying a premium for homes that typically wouldn’t cost as much. In fact, Tampa ranks No. 3 in the U.S. and No. 1 in Florida when it comes to people overpaying for their new homes, with buyers shelling out an average 42.56 percent premium for a home in the city.

Other Florida cities with significantly overvalued housing markets include North Port and Lakeland, which rank at No. 4 and No. 9 in the U.S., respectively. Factors contributing to these high prices include higher mortgage rates and a limited supply of homes on the market.

Dr. Eli Beracha of FIU’s Hollo School of Real Estate attributes the high demand for housing in Florida to an influx of population into the state and millennials forming households at a rapid rate. With prices remaining stable due to these factors, it seems that the trend of overvalued housing markets in Florida is here to stay.

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