South Florida housing market becoming more overvalued: study

MIAMI (FLV) – Prospective home buyers in Miami-Dade, Broward, and Palm Beach County are seeing a price boom in the housing market, according to researchers at Florida Atlantic University and Florida International University.

“South Florida home prices have started to increase over the past few months. It is hard to tell if it is the summer selling season effect, or the reigniting of price growth in the area,” said Ken H. Johnson, real estate economist at Florida Atlantic University.

In the Miami metropolitan area, premiums are nearly 39%. The area is sixth-highest in Florida and 11th-highest in the country.

In third, Tampa holds the highest mark in the state at 42.56%. Florida areas in the top 10 include North Port (41.93%), Cape Coral (41.66%), Lakeland (40.26%) and Palm Bay (39.89%).

Overall, the state holds nine measured markets in the top 15.

None of the state’s nine measured markets were near the top 20 a year ago, according to Johnson.

“We have a huge demand coming from an influx of population into Florida, as well as more new households being formed in the state,” said Eli Beracha of FIU’s Hollo School of Real Estate.

While Florida controls much of the list, two of the highest premiums can be found further north.

In first, Atlanta has buyers seeing a 47.34% premium followed by Detroit at 46.08%.

According to Zillow, the average home value in Miami is $557,679, a 7.7% increase over the past year.