Real Estate Blog

The unwanted honor of the top three areas of Most Overpriced Homes belong all in Florida:  #1 Orlando-Kissimmee, FL #2 Miami-Fort Lauderdale-Pompano Beach, FL and then Jacksonville, FL as #3.  Their predictions are based on the fact that these metro areas have homes that stay on the market longest and sell for less than asking price the most.

Ranking was based on percentage of homes that have seen price reductions which they see as an indication of inflated price (or it could be of unrealistic sellers and competition from short sale and foreclosures), days on the market, list to absorbed price (price it went off the market not neccesarily closed). 

While Jacksonville Florida has an overall 11 months of inventory that indicates that it is still a buyers market and should see some price declines; I don't believe the term "most overpriced" is applicable.   Especially, when one of the ranking factors is S&P/Case Shiller Home Price Index from Moody's.  Since we are not one of the metro areas that S&P/Case Shiller Home Price Index tracks I don't know where this data came from.

But that is not all.  Just look at the ranks for the different items that Jacksonville has compared against the other cities and you can see we rank better in the categories than other communities yet come up with a worse result.

What this chart really means is that these cities had the most homeowners that price their home above market.  These homes sat on the market longer and had to be reduced more and may not of sold at all.  This does not mean that there are many homeowner's out there that have priced their home at market and will sell their homes. 

Article:  http://www.forbes.com/2009/12/03/cities-overpriced-sales-lifestyle-real-estate-miami-florida-homes.html?partner=forbeslife_newsletter

Chart:  http://www.forbes.com/2009/12/03/cities-overpriced-sales-lifestyle-real-estate-miami-florida-homes_chart.html