In some Florida real estate markets, average local residents can’t afford to buy a local median-priced home. In essence, home prices are exceeding incomes in these markets and thus are considered to be overvalued. A major factor in these markets is the increasing number of Americans relocating to The Sunshine State. In particular, many of these transplants are moving to Florida from more expensive markets thus making it easier to drive up prices in bidding wars. Moody’s Analytics recently ranked Florida’s most overvalued markets.
Florida’s top 10 most overpriced markets
The statewide single-family median sale price in April 2022 was $410,000, up 21.8% from the previous year, according to data from Florida Realtors®. With this said, some areas are experiencing even starker increases. As for the most overvalued metropolitan service areas (MSA’s) in the state, they were as follows:
- #1. Homosassa Springs (57%)
- #2. Palm Bay-Melbourne-Titusville (48%)
- #3. Punta Gorda (45%)
- #4. Vero Beach-Sebastian (42%)
- #5. Port St. Lucie (40%)
- #6. Crestview-Fort Walton Beach-Destin (40%)
- #7. Cape Coral-Fort Myers (39%)
- #8. Miami-Miami Beach-Kendall (39%)
- #9. Naples-Immokalee-Marco Island (38%)
- #10. North Port-Sarasota-Bradenton (38%)
Overall, most real estate experts have predicted 2022 to be similar to 2021, however we are already seeing a slowdown in activity. In addition to inflated prices impacting buyer demand, we are also seeing additional pressure with increased mortgage and homeowner’s insurance rates. These factors combined with record inflation are putting significant pressure on the housing market throughout the country. Florida homeowners should prepare for much slower home price gains or even some slight retraction in some markets for the next several years. Are you considering buying, selling, or renting in the South Florida market? Contact Natasha at Live South Florida Realty, Inc. today!
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our trusted “Florida Home Search” app is available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!