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In Florida, a report was just published that recommends that people rent for the time being.
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.
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%.
Even though monthly rents for apartments, condos and single-family homes are rising as well, they are not increasing at the pace of the home-buying market, said Eli Beracha of Florida International University’s Hollo School of Real Estate in Miami.
In Florida, a report was just published that recommends that people rent for the time being.
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.
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%.
Even though monthly rents for apartments, condos and single-family homes are rising as well, they are not increasing at the pace of the home-buying market, said Eli Beracha of Florida International University’s Hollo School of Real Estate in Miami.
From the article.
Despite the increasing in housing prices, the research suggests that Florida's housing market will not crash because prices are expected to level out in the future.
I knew if I read it a contradiction would come out. It also doesn’t discuss how they came up with this so called overvaluation.
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