Home Prices Cool Down in Hot Southern Markets As Affordability Stretches
• Home prices are falling or expected to fall in several Sun Belt metro areas that were previously seeing rapid growth, including Atlanta, Cape Coral, Tampa, and Palm Bay.
• Three separate analyses found these Sun Belt markets to be the most overvalued in the country, with prices 42% higher than expected in Atlanta.
• Factors driving growth and overvaluation include people moving south during the pandemic and a surge of economic activity and job growth.
• Prices have already started slowing down, with year-over-year declines seen in Austin, New Orleans, and Deltona.
• While a crash is not expected, economists foresee a continued price slowdown in Southern states where affordability is stretched.