Despite a market slowdown, South Florida home prices have continued to rise. A new report shows solid growth in home prices during the month of August, making South Florida 1 out of 10 metro areas with a higher year-over-year increase in August than July.
According to the S&P CoreLogic Case-Shiller housing index released earlier this month, home prices in Palm Beach, Broward, and Miami-Dade counties rose 7.1 percent from home prices recorded in August of 2015. Home prices saw an increase in every one of the 20 metro areas tracked by the housing index, with Portland, Ore., and Seattle topping the list with 11.7 percent and 11.4 percent, respectively. The index ranks South Florida sixth for fastest rate of appreciation in the country.
South Florida’s 7.1 percent increase is greater than the national average of 5.3 percent; however, the South Florida housing market has slowed over the course of the year due to a strong dollar in conjunction with a weak global economy. South Florida saw a 0.4 percent increase in home prices from July 2016 to August 2016.
The index keeps tabs on prices of particular houses over an extended period of time, which makes it a reliable measurement of home values; however, the index is one month behind the local Realtor boards regarding data.
Real estate analyst Jonathan Miller reported to The Real Deal that strong demand for entry -and middle-level homes is causing an increase in price growth, while luxury homes are the subject of market softness. With this being the case, now could be a great time to make your luxury real estate investment.
In addition to increasing home prices, there are other factors that help to indicate the health of the real estate market. David M. Blitzer, Chairman of the index committee commented, “Other housing data, including sales of existing single-family homes, measures of housing affordability and permits for new construction, also point to a reasonably healthy housing market.”