Homes in South Florida are growing more overvalued, suggesting that the housing market may not be slowing down anytime soon, reported Sun-Sentinel.
A housing index released this week by researchers with Florida Atlantic University and Florida International University indicates that homes in the region were 16% overvalued compared to their long-term pricing trends in September, an uptick from 14.29% in August.
“These results are contrary to the reports that housing markets are slowing down across the country,” said Ken H. Johnson, a real estate economist with Florida Atlantic University. “Nearly every metro in the study saw an increase in its premium currently being paid.”
While there have been some indications that the South Florida market is cooling, such as a decline in closed sales, the fact that home price appreciation surged in September is a sign that the market may not be close to slowing down, said Johnson.
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