Good news for Southwest Florida home owners.
New research has revealed which states properties are most likely to be sold and rented this year. Florida is No. 2 on the list.
The research, pulled together by online self-storage finder Storage.com analyzed nationwide and regional Google searches for keywords related to real-estate sites such as Zillow and Trulia, to identify which states have the biggest interest in moving.
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These searches were then compared against local populations to identify where reported the highest desire.
According to the research, “a huge 476,050,700 Google searches were made for property and rental sites last year across the US.”
Florida came in with 13,985 searches per 100,000 people – 18% above the national average.
Colorado topped the list as the state where properties and rentals are most in demand. The state averaged 14,414 searches per 100,000 residents, which is a fifth (21%) higher than the national average of 11,869 searches per 100,000 residents.
What state is at the bottom of the most searches list, or homes least likely to be sold or rented? Alaska sellers and landlords are least likely to receive interest, with only 6,025 searches per 100,000 people, which is 49% lower than the national average.
What is the best time of year to sell or rent a home?
As well as naming the states where properties and rentals will receive the highest and lowest levels of interest, the study also revealed the time of year that is best to list them.
Searches around real-estate websites peaked in March last year, with a total of 44,698,660 − 13% more than the monthly average of 39,670,892, so owners may have already missed the prime time to list unless they are ready to advertise their properties now.
If Cape Coral, one of the fastest growing cities in the U.S, has been a financial reach for people shopping for a new home, a new study from researchers at Florida Atlantic University and Florida International University indicates the gap could be closing.
According to the study, housing premiums in many markets in the country are starting to decline, suggesting many areas across the country are moving toward stabilization.
A premium is measured by the degree of overpricing in terms of a percentage difference between actual and statistically modeled home prices.
What about rent prices?:Rent shock: Study reveals Cape Coral costlier than Tampa, Orlando, Seattle, other big cities
Cape Coral, the second most overvalued market in the study, had a 62-basis point decline. The data is from the Top 100 U.S Housing Markets.
“This is good news as it signals these markets could be getting to where prices should be, slowly but surely, creating less risk for catastrophic loss in average home value,” said Ken H. Johnson, Ph.D., real estate economist in FAU’s College of Business. “Ideally, we want to find our way back to the long-term trend for each metro area with as little pain as possible.”
What about housing prices in other cities?
The study showed In eight out of the 10 most overvalued housing markets, housing price premiums have started to edge back down toward their long-term pricing trends.
- Atlanta, the most overvalued market in the country, posted a 12-basis point decline in its housing premium over the past month.
- Florida cities like Tampa, the fourth most overvalued, had a 17-basis point decline and Palm Bay, fifth most overvalued, a 31-basis point decline.
- Knoxville, the sixth most overvalued, had a 13-basis point decline.
- Lakeland, the eight most overvalued had a 23-basis point decline.
- Orlando, number nine, saw a six-basis point decline.
- Charlotte, the tenth most overvalued, saw a 14-basis point decline.
More housing price trends highlighted in the analysis
The Top 100 U.S. Housing Markets, a monthly index in FAU’s Real Estate Initiative, measures housing premiums and discounts in the 100 most populated metropolitan areas in the country by looking at the difference in actual average home price in a city and comparing it to the long-term home pricing trend for the same city to calculate how overvalued or undervalued housing markets are using publicly available data from Zillow.
Several Florida metros also signaled that prices are stabilizing as eight out of the nine measured metros saw small declines in premiums. Examples include North Port with a 75-basis point drop in its housing premium between end of December 2023 and the end of January; Deltona with a 39-basis point drop; and Jacksonville with a 16-basis point drop.
“Equity gains remain strong for current homeowners and prospective homebuyers can get a little breather knowing that prices are slightly more stable. All in all, these are good signs for the housing market,” said Eli Beracha, Ph.D., director of FIU’s Hollo School of Real Estate.
South Florida remains an area of concern for researchers as it was the only measured metro in the state where housing premiums did not decrease, instead going up by 23 basis points.
“As prices are on the upswing still in Miami and premiums aren’t showing signs of heading back to the area’s long-term pricing trend, it might be better, in terms of wealth creation, to rent and reinvest monies that would have otherwise been put into homeownership,” Johnson said.