It’s no secret that Florida is one of the hottest real estate markets in the nation right now.
But certain areas of Florida – including Tampa and Lakeland – also are among the country’s most overpriced housing markets.
That’s according to the latest iteration of an ongoing study of home prices by Florida Atlantic University.
Each month, FAU’s Beracha and Johnson Housing Market Ranking points out the 100 housing markets where homebuyers are paying the greatest “premiums.” That refers to the latest home values, based on reporting sources such as Zillow and Realtor.com, relative to the long-term pricing trend in that market. Researchers Eli Beracha and Ken Johnson have studied the prices of single-family homes, townhomes, condominiums and co-ops going back to 1996.
In their latest report, Fort Myers is No. 8 nationally in terms of U.S. cities where homebuyers are shelling out the greatest premium. Purchasers there pay 56.3 percent above the historic trend.
For instance, in Fort Myers as of April 30, the average single-family home price is just under $404,770. FAU’s “expected” price, based on the 26-year data trend, is about $259,000.
Interestingly, Fort Myers was at or below its expected market price from about November 2008 until August 2020. After nearly 12 years of stable or below-market rates, the average home price in the city has jumped 61 percent in the last 20 months.
Elsewhere in Florida, Lakeland ranked 12th (53.3 percent) among overpriced housing markets, while Tampa was right behind (at 52.4 percent).
Six other Sunshine State cities were among the top 49. They include: Sarasota (48.9 percent), Melbourne (47.7 percent), Daytona Beach (46.2 percent), Orlando (43 percent), Jacksonville (41.8 percent), and Miami-Fort Lauderdale (29.8 percent).
Leading America’s more overpriced market is Boise, where the typical price runs 72.6 percent above the expected average.
The community with the truest current-to-historic price ratio is Baltimore. There, the going market cost is just 2.63 percent above its historic trend. Honolulu is close behind, at 2.87 percent.