Cape Coral weighs in as 42nd on “extremely over-valued” list
A study of the top 299 U.S. real estate markets released today by the economics department of National City Corporation concludes that 53 metro areas representing 31 percent of the total U.S. housing market are “extremely overvalued” and confront a high risk of future price correction.
The study determines a market extremely overvalued if prices are 30% above where the study estimates they should be based on historic price data, area income, mortgage rates and population density.
Southwest Florida is well represented on the list with Naples at number three with prices 62% higher than where they are projected to be and Cape Coral at number 42 with prices 35% higher than expectations.
These have been a mighty exciting times for those of us with a stakehold in the Cape Coral market. The price appreciation which has seen the Cape transform from a solid middle class town to one approaching luxury status is both exhilarating and cause for concern. With gulf access lots now starting at over $300K, are buyers in this wealth category going to be accepting of the Cape’s limitations in the areas of shopping, fine dining and culture.
High-priced housing faces risks [USA Today]
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