David Dweck, founder of the Boca Real Estate Investment Club said that the market would continue to correct downward. Homes in Naples are overvalued by 102%.

After Naples, the nation's most overvalued markets are Salinas, Calif. (79 percent), Port St. Lucie-Fort Pierce (77.4), Merced, Calif., (77) and Bend, Ore. (76). Broward homes are overvalued by 57%, followed by Miami-Dade at 64% and Palm Beach County at 65%. Florida and California account for 17 of the top 20 overvalued markets.

Economists at Global Insight and National City crunched the numbers after factoring in median sales prices, median income, population and historical values. In Broward, 37% of properties are at or below market value, and in Palm Beach County it's 59%. In 2005, the industry has seen increases of 87% for copper and brass, 48% for asphalt, 40% for diesel fuel, 26% for drywall, 18% for plastic construction products and 15% for cement.

By M. Sese
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