JACKSONVILLE, Fla. — A new report ranks Jacksonville as one of the top 10 cities in Florida with the most overpriced homes.
It’s a trend that experts don’t expect to cool down anytime soon.
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The median home price in 2022 for Northeast Florida came in around $370,000 and new data from Florida Atlantic University shows people in Jacksonville are overpaying for homes.
Longtime Florida investor Andrew Koberlein said he knows the housing market is cyclical; for now he’s taking a wait and see approach.
“The market will go through a cycle where that will have to back up,” Koberlein said. “Because of the nature of the economics that could or could not happen in the near future. I am poised with my checkbook.”
Koberlein said he continues to closely watch the market. Realtor Raphael Ferera said rising interest rates and an increase in an inventory compared to last year is shaking things up.
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“People are still listing their house really high -- they’re just not getting that price anymore ... let me see what the neighbor’s household sold for,” Ferera said.
FAU economists are tracking just how overpriced homes are now compared to their historic values. The average home in Jacksonville is selling 43 percent higher than its historically implied price.
That placed Jacksonville at number 8 in the top 10 cities in Florida with overpriced homes, just below Orlando, which came in at 45 percent higher than its historically implied price. Nationally, Jacksonville came in at No. 25.
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While housing prices have started to come down, FAU economist Ken Johnson said he doesn’t expect prices to drop anytime soon.
“There’s not going to be a housing crash. And it’s simply because we have too few units compared to how many people are moving,” Johnson said.
You can see the full report and the researchers’ methodology at this link.
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