Skyrocketing home values over the past 18 months have many people wondering if a price correction may be coming? After the pandemic caused a surge in home prices, we are beginning to see the real estate market settle down a little more. A new analysis conducted by professors at Florida Atlantic University and Florida International University aimed to determine the most overvalued real estate markets by looking at the largest 100 metro areas in the country. This analysis also included nine markets throughout Florida. We discuss some highlights below.
The top 10 overvalued markets in the country
- #1. Boise, ID (+80.64%)
- #2. Austin, TX (+50.72%)
- #3. Ogden, UT (+49.70%)
- #4. Provo, UT (+46.16%)
- #5. Detroit, MI (+45.57%)
- #6. Spokane, WA (+45.21%)
- #7. Salt Lake City, UT (+42.41%)
- #8. Phoenix, AZ (+42.31%)
- #9. Las Vegas, NV (+41.88%)
- #10. Stockton, CA (+38.50%)
Florida metro markets ranked (9 total)
- #1. Lakeland, FL (+31.39%)
- #2. Tampa, FL (+31.35%)
- #3. Melbourne, FL (+28.97%)
- #4. Daytona Beach, FL (+25.55%)
- #5. Fort Myers, FL (+23.28%)
- #6. Orlando, FL (+22.32%)
- #7. Jacksonville, FL (+22.02%)
- #8. North Port-Sarasota-Bradenton, FL (+20.11%)
- #9. Miami-Fort Lauderdale, FL (+12.91%)
Some experts predicted that the pandemic would cause home values to drop, but instead the exact opposite occurred. As the demand for social distancing increased, so did the desire to move to larger homes in the suburbs. With more employers transitioning to remote working environments and interest rates dropping to historical lows, the demand for home buying exploded. Although the authors of this study found many markets in Florida to be overvalued, it is nowhere near as serious as it was a decade ago. During the last housing boom, it has been estimated that home values in Florida were overvalued by 60% or more.
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