South Florida home values rose 12 percent in the first quarter of 2013, according to Seattle-based Zillow.com, 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