BOCA RATON, Fla. — Homes are being overvalued by an average of 20% in major Florida cities as of June.
A study done by researchers at Florida Atlantic University and Florida International University identified five major Florida cities where houses were being sold for more than they are worth.
These cities are Jacksonville, Orlando, Tampa, Miami and Tallahassee.
Out of the five, Tampa ranks the highest with a 32% premium.
Despite the increasing in housing prices, the research suggests that Florida’s housing market will not crash because prices are expected to level out in the future.
Dr. Ken H. Johnson, a real estate economist and associate dean in FAU’s College of Business, does believe that homeowners will be stuck paying high premiums after housing prices level out….