Despite the destruction wreaked by Hurricane Ian, the market of residential property will probably remain overheated even in Southwest Florida.
Ken Johnson, Economist at Business College at the Florida Atlantic University and researcher of monthly reports concerning the US housing purchase and sale market, expects a temporary slump in these markets, as the region begins to recover after the hurricane, with a subsequent revival of growth.
Recently published ratings based on August data, compiled by Johnson together with Eli Beracha, Professor at Real Estate School at the Florida International University, suggest that the residential property market in Fort Myers and Cape Coral was the most overheated among 100 largest US metropolitan areas. In August, the average value of a home in this region was $429,775, which is 70.43% higher than long-term pricing trends in the market.
Another region in Southwest Florida (Sarasota – North Port – Bradenton) is in the 13th place in the rating of overvalued housing markets. An average home there costs $501,955, which means a 54.90% premium. The rating takes into account various types of residences, from single-family houses to townhouses, condominiums, and co-ops.
The value of housing in Fort Myers and Cape Coral will most probably continue to grow, as there used to be a supply shortage in this region before, and now, when many properties were damaged by the hurricane, there will be even fewer listed options in the market.
Experts believe that in the long term, even a continuous threat of hurricanes will not discourage people from moving to Florida. The state’s infrastructure was already destroyed in 2004 – 2005 and later, but this didn’t make the warm climate and the beneficial conditions for the business any less attractive.