According to a recent study conducted by Florida Atlantic University, the housing market in some parts of the United States remains overpriced, with buyers paying much more than homes are actually worth. The study compared the historical trends of expected home values to the average list prices across the 100 largest metro areas, identifying the cities with the largest percentage differences between the two. Surprisingly, five of the ten most overpriced housing markets in the country are located in Florida, with Atlanta, Georgia taking the number one spot. In this article, we’ll take a closer look at the gap between expected home values and actual prices across these ten markets and explore whether the housing market is starting to cool down.
Category Archives: Real Estate
Elon Musk, the CEO of Tesla, recently made waves on Twitter with his commentary on the housing market. In a tweet, Musk stated, “They dug their own graves” in reference to the housing bubble. This controversial statement has sparked discussions and debates about the impact of Musk’s opinions on the economy. Many experts have weighed in on the matter, sharing their thoughts on the potential consequences of Musk’s critique. With Musk’s track record of moving markets with his tweets, investors are left to wonder what his take on the housing market means for their portfolios.
According to Morgan Stanley’s Chief US Economist, Ellen Zentner, the housing market has bottomed, providing a soft landing for the economy. In her note on April 21, Zentner stated that while affordability remains a challenge, it hasn’t worsened and has even improved over the past three months. Housing inventory remains low, but it’s not getting worse. Tight lending standards are likely to prevent any significant increase in housing activity, but there is no catalyst for another leg lower either. As a result, the US GDP component related to residential investment could turn neutral during the third quarter of this year. Other indicators, such as building permits and housing starts, have displayed weakness amid elevated rates. Morgan Stanley expects negative comparisons in housing activity for the rest of the first half of this year, but they should wane in the second half. Home prices are expected to fall 4% this year, but the housing shortage has prevented a significant drop in prices. This, coupled with healthy consumer balance sheets and spending, has boosted Morgan Stanley’s outlook. The housing market bottom provides a cushion for the soft landing thesis, says Zentner.
The New Face of Florida: Professionals are Fueling the State’s Booming Growth
It’s not just retirees seeking warmer weather: Florida’s become one of the biggest booming states in the South — here’s why more Americans are migrating. Professionals are a big part of the pandemic-era growth.
Florida is no longer just for grandparents and retirees, according to a new report by the Bureau of Labor Statistics. In fact, it recently beat New York as the most jobs of any state — a first since the Bureau began to report these numbers in 1982. Over 400,00 people moved to Florida from July 2021 to July 2022, which was an increase of over 180,000 from the year before. A good portion of the new residents are not just there to relax either.
The Sunshine State ended last year with 9,578,500 non-farming industry jobs, compared to 9,576,100 in the Empire State. While the gap has been closing for a while, it takes some digging to understand why. It’s not as though an obvious guess — pre-retirees riding the pandemic to move south — is a top reason. “Florida is no longer God’s waiting room,” said Craig Studnicky, CEO of ISG World, a real estate firm that specializes in South Florida luxury residential developments.
Studnicky’s wording includes an important clue to who’s driving the growth in Florida: “Young people,” not their grandparents or parents. But if the age demographics are shifting, the pandemic still acted as a catalyst for people of all ages to move south.