Cape Coral Housing Market Is The Most Overvalued In America
The current housing market is at its highest rate of unaffordability and is keeping possible homebuyers out of the market. With prices staying high and inventory not rising, this could mean even higher rates.
Florida Atlantic University determined the most overpriced housing markets in the nation by comparing the average expected home values to the average list prices. They compared across the 100 largest metro areas and finding the cities with the largest percent differences between the two.
The Cape Coral-Fort Myers Metro Housing Market
Based on September data, homebuyers in the Cape Coral-Fort Myers metro area are paying an average for $401,471 based on ZVHI price. This can compare to the expected price for a home in Cape Coral that is $273,529. This means buyers are paying 46.77 percent more than the home value price and the listing price. The prices are now unreasonable for an average family when Cape Coral was once known for cheap housing options.
Although Cape Coral ranked the top over priced housing market, many other Florida metro areas were not far behind. With a few cites separating- No. 4 Tampa (42.13%), N0. 5 Palm Bay (41.95%), No 6. Lakeland (41.07%) and No.7 North Port (40.70%) followed. This means that 8 out of 10 cities that were ranked the top ten most overvalued housing markets are found in Florida.
While one may wonder why Florida is one of the most overvalued areas, this can be explained in very simple terms. There is too much demand with not enough supply to keep up.
Florida has always experienced a “snowbird season”, but there has been a new wave of people moving to Florida. According to the United State Census Bureau, “The state of Florida saw the biggest increase in population in 2022 with 319,000 new residents.” The Bureau also reports that Florida was the fastest-growing state last year for the first time since 1957.
Even though Florida has easily earned the most overvalued state in the housing market, what is the cheapest? If you are looking for a steal we recommend to check out New Orleans, Louisiana. New Orleans lands in 100 place with -1.99 percent discount. One of the few markets where houses are selling at a discount.
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