The Real Deal Miami

Zillow chief sees home value surge halting

April 25, 2013 10:00AM

Spencer Rascoff

South Florida home values rose 12 percent in the first quarter of 2013, according to Seattle-based, but the surge won’t last, chief executive Spencer Rascoff told an interviewer at University of Pennsylvania’s Wharton School.

“South Florida is appreciating very quickly. That’s a little worrisome. I think those rates of appreciation are unsustainable,” Rascoff said.

The real estate website’s Home Value Index for Palm Beach, Broward and Miami-Dade counties was $159,000, compared with $141,800 in the first quarter of 2012.

The South Florida index peaked at $310,500 in April 2006.

Property values have increased steadily across the region over the past year following a prolonged housing bust. But Rascoff predicts South Florida gains to slow to 5 percent through early 2014 as mortgage rates rise and more properties come onto the market. [Knowledge@Wharton]Emily Schmall