Lakeland and Tampa Bay are the most overvalued markets in Florida, according to research by Florida Atlantic University real estate economist Ken H.
The faster home prices rise, the riskier it gets, he said.
This, on top of a strong influx of people moving to Florida during a period of record-low interest rates, have contributed to the soaring housing prices, he said.
Tampa Bay’s housing inventory is down 46.6 percent from pre-pandemic levels, a Zillow analysis found.
Nearly a quarter of Americans, a record low, said they think now is a good time to buy, according to a January survey by Fannie Mae.
It’s difficult to measure if Tampa Bay’s housing market is overvalued by comparing historical pricing trends, said Lei Wedge, an associate professor at University of South Florida’s Muma College of Business.
Because Florida was hit hard by the 2008 recession, homes across the state were deeply undervalued into the 2010s, Wedge said.
“You have investors buying the cheaper homes, making it extremely difficult for local homebuyers,” Wedge said.
While shopping around for homes last year, sellers asked Sorensen to sign a contingency that they would pay the difference in the appraisal if they were going to place an offer.
Tampa real estate agent Kendall Bonner said she’s had clients pay $27,000 over the appraisal for a house.
Pinellas County real estate agent Mary Meade said she’s concerned about how local manufactured housing like mobile homes are appreciating in value, counter to their nature.
When the neighboring homes appreciate in value at record rates, manufactured homes are going up with it.
She hopes the interest rate increases could deter investors from buying up the already limited housing and inflating home and rental prices.