A possible recession may calm the hot housing markets, but that may not be enough for many new homebuyers because home prices will still remain higher than usual in most markets. And that could last several years.
Researchers from Florida Atlantic University say 19 housing markets across the nation are overvalued by at least 50%. And home prices in the tri-county area remain steady despite the slowdown in mortgage applications.
That’s according to Ken Johnson, an economist in FAU’s College of Business and Eli Beracha of Florida International University’s Hollo School of Real Estate. Their data measures the top 100 overpriced or underpriced metropolitan cities in the U.S., from single-family homes to condominiums. Despite a recent two-month decline, data shows that in May, Boise, Idaho, had the nation's most overvalued housing market, where buyers have spent 70% more on a property.
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Miami-Dade and Fort Lauderdale are currently overvalued by 32%, ranked 42nd nationwide and 9th statewide. Fort Myers is the most overvalued market in the Florida at nearly 60%.
FAU and FIU researchers say the housing market isn't seeing a downturn in prices because the influx of new residents have driven prices up as demand outstrips housing inventory.
As for Palm Beach County, according to county's appraiser, taxable property values in the county have increased 13.55% from this time last year. County commissioners are planning a possible reduction in the mileage rate to soften the blow for property owners.
