FAU and FIU: The hot housing market appears to be cooling in the West, but for some reason eastern U.S. cities continue to see rising price levels.
BOCA RATON, Fla. – According to researchers at Florida Atlantic University (FAU) and Florida International University (FIU), the housing market appears to be cooling in the American West while the eastern United States still sees price hikes.
The November analysis indicates that homes are overvalued in 98 of the top 100 housing markets, with just Honolulu, Hawaii and Baltimore, Maryland, offering bargains.
“These latest results suggest that the long-anticipated housing downturn is already beginning in the Western half of the U.S.,” says FAU’s Ken H. Johnson. “This is not totally surprising because it is in the West where the greatest separation between actual housing prices and projected housing prices has occurred to this point.”
Meanwhile, markets like Atlanta and Charlotte, North Carolina, exhibit a consistent upward trend in prices and mounting premiums, which is also echoed in areas such as Fort Myers and Tampa.
“Why varying results are developing between housing markets in the West and East is unclear at this time,” says FIU’s Eli Beracha. Florida markets are becoming increasingly overvalued, with Lakeland and Tampa the most exposed regions, while Miami is close behind.
“Compared to the rest of the state, Miami is noticeably less overvalued,” Johnson says. “That should give South Florida buyers some measure of comfort in a competitive market that frequently requires offers over list price.”
