Home News Experts say overvalued market causing South Florida real estate prices to be so high

Experts say overvalued market causing South Florida real estate prices to be so high

by admin
0 comment

Miami – The housing and rental markets have been hit hard by rising inflation concerns across the country.

Real estate economist Ken H. Johnson says homes in South Florida are overvalued.

“We’re definitely, and probably the worst home price we’ve seen in Miami in the last 40 years,” Johnson said. “The Miami Metro, which runs through Palm Beach County, is priced about 30% higher than this long-term pricing trip. The Miami rental market is about 22% higher than long-term insurance premiums, so domestically. It’s the most expensive market. “

Combine it with almost every price that goes up.

“Inflation, higher gas prices, higher food prices, higher material labor, all of which pose a crisis to individual family budgets,” Johnson said.

Jonathan Alfonso operates Portal Real Estate and his own YouTube channel, providing advice to online viewers.

advertisement

“Many people are at stake, but the question for me as a real estate expert is how it will be reflected in the housing market,” Alfonso said. “There is still a very large demand for very little inventory, so that inventory is still trying to get a premium.”

Johnson added: “The population flowed in more than 12 years ago, and more importantly, this time there is a significant shortage of inventories.”

There is an influx of occupants competing with the locals for a relatively small number of homes for sale.

“It was two years when interest rates were very low. Also, many people who were able to refinance our real estate were so historically closed that we now sit down with very low mortgage payments. There are a lot of people out there. Why do I sell where I go, “Alfonso said.

Johnson said: There is no easy way out of this except to build the unit and do it as soon as possible. “

advertisement

Additional resources

https://business.fau.edu/departments/finance/real-estate-initiative/index.php

https://business.fau.edu/executive-education/housing-market-ranking/

https://business.fau.edu/executive-education/overvalued-rental-markets/

advertisement

https://business.fau.edu/executive-education/bhj-buy-vs-rent-index/

Copyright 2022 by WPLG Local10.com-All rights reserved.

You may also like