Property Values : Are Duck Key Property Overvalued?

 

Are Prices of homes in the Keys overvalued? Because of the location of the Keys and the limitations placed on home building due to the Rate of Growth Ordinance it is hard to say if homes in the Keys are overvalued.

A recent USA Today article suggests that throughout much the United States home prices have reached a point of overvalue. The basis for the article is a study by Richard DeKaser, chief economist of National City Corp. The report examined 299 metro areas accounting for 80% of the U.S. housing market. A market was determined to be extremely overvalued if prices were 30% above estimates of what they should be based on historic price data, area income, mortgage rates and population density — a proxy for land scarcity.

The study identifies Santa Barbara with houses 69% over-priced as number one in the ranking. Naples, Florida ranks number three with houses overvalued.

Areas with under-valued housing were also identified in the study. The study found that home-price gains outpaced income gains in many areas. Prices outpaced income gains by at least 10 percentage points in 239% of the housing areas reported on.

To see a list of areas ranked 54 through 299 go to housing value ranking.

To read the USA Today article go to http://www.usatoday.com/money/economy/housing/2005-08-16-home-prices-usat_x.htm

 

Top 53 Metro Areas - High-priced housing faces risks

The study identified fifty-three metropolitan areas representing 31% of the total U.S. housing market considered extremely overvalued and likely to confront a high risk of future price corrections. Eleven of the overvalued metropoitan areas are located in Florida.

The 53 Metro areas that are considered extremely overvalued and vulnerable to price correction are listed below. While the Florida Keys does not fall into a metropolitan area, Miami just to the north of the Keys ranks 21st in the list of 53 povervalued areas.

Rank Metro area
Q1 valuation

1 Santa Barbara, Calif.
69%

2 Salinas, Calif.
67%

3 Naples, Fla.
62%

4 Riverside, Calif.
60%

5 Merced, Calif.
59%

6 Stockton, Calif.
58%

7 Port St. Lucie, Fla.
58%

8 Madera, Calif.
57%

9 Napa, Calif.
57%

10 Medford, Ore.
55%

11 Sacramento, Calif.
54%

12 Modesto, Calif.
53%

13 San Diego, Calif.
53%

14 Santa Rosa, Calif.
52%

15 Chico, Calif.
52%

16 Barnstable Town, Mass.
50%

17 San Luis Obispo, Calif.
49%

18 Oxnard, Calif.
48%

19 Fresno, Calif.
48%

20 Los Angeles, Calif.
48%

21 Miami, Fla.
46%

22 West Palm Beach, Fla.
46%

23 Vallejo, Calif.
45%

24 Ocean City, N.J.
45%

25 Bend, Ore.
45%

26 Sarasota, Fla.
45%

27 Redding, Calif.
44%

28 Fort Lauderdale, Fla.
43%

29 Nassau-Suffolk, N.Y.
42%

30 Santa Ana, Calif.
41%

31 Atlantic City, N.J.
41%

32 Bakersfield, Calif.
40%

33 Oakland, Calif.
39%

34 Santa Cruz, Calif.
39%

35 Palm Bay, Fla.
38%

36 Las Vegas, Nev.
38%

37 Poughkeepsie, N.Y.
37%

38 Vero Beach, Fla.
37%

39 San Jose, Calif.
36%

40 Bellingham, Wash.
35%

41 Panama City, Fla.
35%

42 Calif.pe Coral, Fla.
35%

43 Providence, R.I.
34%

44 Reno, Nev.
33%

45 Kingston, N.Y.
32%

46 Visalia, Calif.
32%

47 Deltona, Fla.
31%

48 Boston, Mass.
31%

49 Washington D.C.
31%

50 Essex County, Mass.
30%

51 San Francisco, Calif.
30%

52 Prescott, Ariz.
30%

53 Duluth, Minn.
30%

 

 

 

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