Jun 7, 2022 - Real Estate

Tampa among most overpriced housing markets in U.S.

Tampa Bay has one of the most overpriced housing markets in the nation, according to new research from Florida Atlantic University.

By the numbers: Lakeland ranks 12th nationally, and second in the state, with homes overvalued by more than 53.2%.

Tampa — at 52.4%— ranks No. 13 nationally, third in the state.
North Port-Sarasota-Bradenton is No. 17 nationally, fourth in the state at 48.9%.

How it happened: Super low mortgage rates fueled our hot housing market, especially during the pandemic, pushing bidding wars higher.

But now that the Federal Reserve is raising rates for inflation, that's cooling demand, FAU economist Ken H. Johnson said.

Be smart: Johnson warns that an incoming slowdown could help people priced out of the market get into homes.

Yes, but: Recent buyers may have to endure stagnant or falling home values while the market settles — a point to consider for those who want to resell.

More Tampa Bay stories