The overheated market is becoming a front-and-center issue.
Eight Florida markets rank among the top 50 nationally in a residential real estate category that, while lucrative for sellers and their agents, doesn’t bode well for the long term. The data point? Highest premium paid on an average home sale.
The report, from Florida Atlantic University’s College of Business, studied 100 markets. And to little surprise, a key takeaway was demand for housing surged sharply in 2021, with homes nationwide selling considerably higher than historical data would predict.
The study attributes low interest rates and buyers departing expensive coastal cities such as New York and San Francisco as key contributing factors to the surge in buyers in Florida and elsewhere. Of course, surging demand and limited inventory have also created a strong sellers market.
Boise, Idaho has seen the highest premium paid on an average home sale, according to the report, with buyers paying a 78.4% premium over the expected home price.