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By HELEN HUNTLEY
Published November 29, 2004
Is the state's real estate market overheated? Property owners in Southeast Florida may have the most to worry about, according to a report in Smart Money magazine.
The magazine's December issue looks at housing prices in relationship to incomes using an analysis by Ingo Winzer, president of Local Market Monitor in Wellesley, Mass. By his calculations, prices in the Tampa Bay area are 11 percent ahead of incomes, which is within the range he calls "fairly valued." Two years ago, Tampa Bay was on his overvalued list.
Fort Lauderdale is the most overvalued market in the state, 36 percent ahead of incomes. However, California is still in a class by itself, with 10 of its metro areas 50 percent or more overvalued. Winzer says most Florida metro areas are fairly valued.
Overvaluation doesn't necessarily mean prices will fall, but that they may be flat or may not rise as rapidly as they have in the past. Smart Money says this year's hurricanes could put a damper on prices.
[Last modified November 26, 2004, 18:34:07]