Overvalued housing markets in area may get worse with Ian
Southwest Florida officially bypassed Boise, Idaho for the No. 1 spot on the highest premium list.
Business Observer Staff
| 4:18 p.m. October 17, 2022
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Still reeling from the impact Hurricane Ian had on the state, the housing market in Southwest Florida has been dubbed as the nation’s most overvalued market by researchers at Florida Atlantic University and Florida International University.
A press release from the Florida Atlantic University College of Business states the Cape Coral and Fort Myers metropolitan areas blew past the former highest premium area of Boise, Idaho. Based on statistical modeling of past sales, properties should be selling for $252,176. But right now, the average is $429,775.
In addition to the Cape Coral-Fort Myers market, Lakeland and Tampa are included in the top 10 most overvalued markets. The pricing trends go back to 1996 covering single-family homes, townhomes, condominiums and co-ops.
Florida continues to be a popular destination despite the presence of hurricanes.
“Even with the constant threat of hurricanes, people want to live here in a warm and business-friendly climate,” Ken Johnson, an economist in FAU’s College of Business, says in the release. “Several storms hit the state in 2004 and 2005 and more since then, and there was concern existing residents and transplants may choose to go elsewhere, but the state is as popular a destination as ever. People have short memories when it comes to storms.”
And even Hurricane Ian might not be enough to cool off the housing market here.
“The area already was facing a shortage of homes for sale before the hurricane – and that likely will get worse with so many properties sustaining damage during the storm,” Eli Beracha of FIU’s Hollo School of Real Estate says. “The properties that are in condition to sell will be that much more valuable.”