I just wrote an article called "The Problem with Real Estate Market Predictions" in a separate blog I maintain. It's basically calls into question yet another report saying the Florida home values are overpriced. In my mind, our home values are not overpriced -- we're basically at the national median and we expect to continue to benefit from population growth. Here's what I take most exception to:
The analysis is highly inaccurate because it does not include 2 very important things: Net Worth and Population Growth. Net Worth is important because many Floridians are retirees with equity of $500,000 or more but who are also on a fixed income, perhaps $40,000 or less. Second, Florida's population is booming as many people want to get away from the cold and many retirees are relocating to Florida. In fact, one major driver of Florida home values are people relocating from New York where home values are at least twice that of Florida's prices.