The ascent of South Florida’s home prices is beginning to slow, according to data from RealtyTrac’s annual home price analysis.
Miami, Fort Lauderdale and Pompano Beach markets saw a 10 percent increase in home prices in February, year-over-year — half that of the 20 percent appreciation from the previous year.
This trend was reflected nationally, with slowing appreciation in cities like New York, Los Angeles, Chicago, and Washington DC, but the report states this trend is not necessarily a bad thing.
“We actually see this as a good thing because if home prices were to continue appreciating in the double digits for too long, we could run into the same boom/bust market of years past,” said OB Jacobi, president of Seattle-based Windermere Real Estate, in a statement.
The report predicts single-digit percent increases for upcoming years.
Other notable statistics in the report included luxury homes — residences priced $1 million and above — growing to 4.25 percent of all sales nationwide, up from 3.46 percent the previous ear. Median home prices in the United States also increased 14 percent to $183,000.
The median price of foreclosed properties is also increasing nationwide, with a 17 percent jump from last year to $127,000, meaning savings on foreclosure buys are decreasing.
“After the last flurry of distressed buying in the first half of 2013 we have seen a gradual move to a more normal real estate market, with real buyers and real sellers,” said Mike Pappas, CEO and president of Miami-based Keyes Company, in a statement. “This translates to a healthy move toward historic single digit appreciation levels.”
While the report states the majority of major metropolitan areas are seeing slowing prices, cities like Austin, Texas; San Jose, California; and Denver, Colorado are still experiencing new peaks in median home prices from last year. — Sean Stewart-Muniz