[MadManofBethesda]

"Researchers are urging Florida homebuyers to consider renting while they wait for the state’s overheated market to cool as soaring prices in South Florida hit records in June.

Statewide, they say, homes are overvalued by 21.76%. creating a risk that buyers could get stuck with overpriced homes for significant periods of time until prices eventually ease.

“The across-the-board increase in the premiums paid for housing throughout the state is very worrisome,” Ken H. Johnson, real estate economist and associate dean at Florida Atlantic University’s College of Business, said in a report released Thursday. “Trees do not grow to the sky, and neither do home prices."

https://www.sun-sentinel.com/real-es...bja-story.html

The report found home prices in the Tampa area were the most inflated in the state, selling in June for a 32% premium, up from 28.53% in May. In South Florida, prices were 16.89% above their historical norms, with the Orlando area at 21.19%.

[gypsychic]

Originally Posted by MadManofBethesda

"Researchers are urging Florida homebuyers to consider renting while they wait for the state’s overheated market to cool as soaring prices in South Florida hit records in June.

Statewide, they say, homes are overvalued by 21.76%. creating a risk that buyers could get stuck with overpriced homes for significant periods of time until prices eventually ease.

“The across-the-board increase in the premiums paid for housing throughout the state is very worrisome,” Ken H. Johnson, real estate economist and associate dean at Florida Atlantic University’s College of Business, said in a report released Thursday. “Trees do not grow to the sky, and neither do home prices."

https://www.sun-sentinel.com/real-es...bja-story.html

The report found home prices in the Tampa area were the most inflated in the state, selling in June for a 32% premium, up from 28.53% in May. In South Florida, prices were 16.89% above their historical norms, with the Orlando area at 21.19%.

So where are people supposed to rent? Anyone priced rentals lately?

[Jimrob1]

Even here in Ocala some young people have told me they are paying $1350 for a 550sf 1 bedroom apt. The rent doesn't even include the water and sewage. There are not alot of rentals available to begin with. There are so many looking for rentals that there are waitlist to get in an apt. They have to make 2-3 times over the rent to qualify. Then the rent gets raised when they renew the lease. Then they have the utilities, car payments, Insurance, phone, internet, food, TV if they have it. How they pay for entertainment is beyond me. I don't see how they are paying all this, the main job here seems to be warehouse work. I don't know what the hell is going on but something is going to give, if the housing situation is not dealth with in this country. It is not just Florida its the entire country.

[FL_Expert]

It feels to me like more inventory has come onto the market lately. Prices are still high, but people will have a better chance at buying at least.

[beach43ofus]

The source of the OP's post is a College Professor. I've known a lot of College Professors (I'm an MBA'er) & I can tell you that most of them never had any prolonged success in the private sector. Many had very limited real world experience. This Professor is one of them.

Additionally, his BS & MBA were both from Auburn. Folks, Auburn is the softest SEC school of all. They have very easy entry levels. Then, he got his Phd from Alabama...more legit than Auburn for sure, but still not Vanderbilt, Texas A & M, Florida, or Georgia. We're not talking Ivy League MBA, or MIT grad here.

If this guy had any prestigious real world experience, dont you think we'd see it here?

https://business.fau.edu/faculty-res...e/kjohns91.php

Dude's a "researcher". He's a numbers wonk, & his numbers are backwards looking. He's ignoring major cultural & financial trends that are pushing FLA home values upwards. I won't go into depth again here, but look at my prior posts over the past week on this topic...here are the 6 I've discussed at length:

-work-from-home
-baby boomers
-increased inflation
-migratory tends
-taxation by state
-cost of living by state

You cannot rent for 1-2 years, and shake the impact of all 6 of these collectively. In 3-5 years, you might dodge a few of them.

Here's another potential solution to FLA's currently hot housing market. Buy as little house or condo as you can possibly stand now, to minimize your exposure to the future downturn. When a downturn occurs (notice I said "when" and not "if"), sell the tiny home/condo, and move up to your dream home....probably 3-5 years from now.

About 1/2 of home buyers here pay cash, so they have lower closing costs. Buying a lot less home than you want & can afford, will also minimize closing costs, & carrying costs for the next 3-5 years. Buy now, AND on the next dip...if your time horizon is right. If you are in your 80's, it might be better to rent, and not burden your heirs w/having to sell you place here. If you are ~50-65 years old (& healthy), this is a strategy to consider.

https://www.floridarealtors.org/news...h-sales-metros

[WrongStreet]

Originally Posted by beach43ofus

You cannot rent for 1-2 years, and shake the impact of all 6 of these collectively. In 3-5 years, you might dodge a few of them.

Here's another potential solution to FLA's currently hot housing market. Buy as little house or condo as you can possibly stand now, to minimize your exposure to the future downturn. When a downturn occurs (notice I said "when" and not "if"), sell the tiny home/condo, and move up to your dream home....probably 3-5 years from now.

About 1/2 of home buyers here pay cash, so they have lower closing costs. Buying a lot less home than you want & can afford, will also minimize closing costs, & carrying costs for the next 3-5 years. Buy now, AND on the next dip...if your time horizon is right. If you are in your 80's, it might be better to rent, and not burden your heirs w/having to sell you place here. If you are ~50-65 years old (& healthy), this is a strategy to consider.

https://www.floridarealtors.org/news...h-sales-metros

While I don't necessarily agree with your take on the OP's source (not sure what him being a professor from Auburn has to do with anything). I do agree with the last part of your post. Renting can be just as burdensome and costly as buying an overpriced home.

If the inventory allows for it, it does seem more prudent to just purchase small and wait out the hot market and then upgrade in a couple years. The market will not be this hot forever, people should be patient and take advantage of the low rates while not overspending on their dream house just yet. Unless, of course, they're loaded and don't mind drastically overpaying.

[beachmouse]

And if you buy with a downturn in mind, the property in a ‘great neighborhood- great schools’ area in going to have a more sticky downward price than one in a less desirable area.

[beach43ofus]

Originally Posted by WrongStreet

While I don't necessarily agree with your take on the OP's source (not sure what him being a professor from Auburn has to do with anything). I do agree with the last part of your post. Renting can be just as burdensome and costly as buying an overpriced home.

If the inventory allows for it, it does seem more prudent to just purchase small and wait out the hot market and then upgrade in a couple years. The market will not be this hot forever, people should be patient and take advantage of the low rates while not overspending on their dream house just yet. Unless, of course, they're loaded and don't mind drastically overpaying.

Remember when mortgages were portable, & assumable? If I were in banking, I'd try to bring that back asap.

[lluvia]

Originally Posted by beach43ofus

Remember when mortgages were portable, & assumable? If I were in banking, I'd try to bring that back asap.

Yeah, why not?
Subprime loans are back.