Since the end of the recession, home values have been steadily increasing. According to the latest data, the prices for homes across the country increased by 7 percent in the month of March, which is significantly higher than the same time from 2016. The 7 percent increase is the highest of its kind since May 2014. The data shows that half of the country’s 50 largest areas are now overvalued. This means that the prices for homes are 10 percent higher than the sustainable long-term level.
In Florida, the Orlando and Miami housing markets fall into the overvalued category. This has led to first-time buyers getting into bidding wars for the purchase of a home and they are also facing rising interest rates for mortgages not only in Florida but across the country.
What does this mean for home buyers in Florida? It might be difficult for buyers to find a home in their original price range or budget. They might also have trouble fitting their monthly mortgage payment into their expenses. But, these numbers continue to increase as employment and the economy continue to improve.
The reason for the large jump in value is that there is a back log of demand from our country’s largest generation of people. Workers are moving to areas of the country where there is more supply of affordable homes on the market, causing other areas to take a look at how the homes are being priced.
Real estate is a tricky business. The market fluctuates often, which can lead to a poor investment or a really good investment. You need to know the risks involved with getting into real estate in Fort Lauderdale.
Source: Florida Trend, “Some of Florida’s biggest housing markets are now overvalued,” May 07, 2018