TAMPA, Fla — Tampa Bay’s real estate market has been hot, but a new price study suggests in some areas it may be overheated.
A new pricing study from real estate economists at Florida Atlantic University and Florida International University found four Florida regions are among those they determined to be the most overvalued housing markets in the nation.
They are:
- Tampa, 37.96%
- Lakeland, 37.86%
- Fort Myers-Naples, 34.64%
- Melbourne, 34.13%
"The danger in buying into an overvalued market is that you may have to own the home longer to realize significant financial returns," FIU's Eli Beracha said in a statement. "Once prices level off, reselling the property for a higher return is very difficult."
Buyers say those crunching the numbers could potentially be overpaying. Still, some local realtors say that’s not a fair way to value the current market.
“We were undervalued before COVID compared to other parts of the country,” said Liane Jamason, a broker with Dwell Real Estate. “So, absolutely I think that’s part of why you’re seeing it go up. And there’s nothing I can think of that’s going to send us down anytime soon.”
Economists who published that study say they expect prices to settle once supply chain issues have been resolved and houses can be built quicker.
They also see an eventual reduction in the surge of buyers moving here after having been on the sidelines during the pandemic.
Realtor.com recently predicted that Tampa will rank No. 10 in the top housing markets of 2022. It's the highest-ranking Florida city, according to the forecast.
According to the company, it expects Tampa to see a 9.6 percent rise in home sales and a 6.8 percent rise in prices in 2022.