Tampa homes are overvalued by 40 percent, says study | Florida News | Tampa
Tampa’s housing inventory is currently the “lowest ever observed,” so it’s no wonder that homes are also insanely overvalued.
A new study released today by researchers at Florida Atlantic University and Florida International University, says Tampa homes are currently overvalued by 40% above historic pricing.
The study, which looked at America’s 100 largest metros and used publicly available housing data, ranked the Tampa area the 14th most inflated in the country, with nearby Lakeland ranking 12th.
In total, Florida had seven metros fall within the top 33 most inflated. Ohio was also leading the country, with four cities in the top third of the ranking.
“If you’re buying a home in these metros across Florida, Ohio and other areas, it’s imperative that you know you’re buying close to the peak of the market,” said Johnson, an economist for FAU Executive Education within the College of Business, in a statement. “The danger is that prices will soon level off or even decline, and you’ll be stuck in that home for a significant amount of time before you can sell it at a profit that makes financial sense.”
According to the study Boise, Idaho, is the most overvalued market, where buyers pay about 77% more, followed by Austin, Texas, with 60%.