Zillow: SoFla ranks fifth for housing confidence

Analysts say housing market is nowhere near crashing

Sep.September 10, 2015 09:45 AM

Residents of South Florida are some of the most confident in the country when it comes to the local housing market, but much less so than in the beginning of this year, according to a new survey from Zillow.

The real estate website sent out a survey to 10,000 renters and homeowners across the country to collect opinions on the health of their respective housing markets. Respondents from the Miami metropolitan area, which encompasses Broward, Miami-Dade and Palm Beach counties, said the market here is doing just fine. South Florida’s confidence ranked fifth in the United States, behind Phoenix, Denver, Washington D.C. and San Jose in the top spot.

However, that confidence has fallen quite a bit since January, when Zillow sent out its first survey of the year. In that month, local residents had the second-highest confidence in the country.

That trend of decreasing confidence was reflected all across the United States, according to the July report. Zillow analysts chalk this up to Americans coming down from the high that was the housing market’s explosive recovery from its crash in the late 2000s.

“The housing market is slowing down, and Americans’ confidence in the future of the market is understandably fading a bit, too,” Svenja Gudell, chief economist at Zillow, wrote in the report. “Despite remaining quite confident overall, homeowners are less confident about the future than they are about the present. Seeing still stronger than normal home value appreciation in markets like San Francisco and Seattle might remind them of the last housing bubble. But the good news is things are leveling off with no crash in sight. If incomes rise to keep up with home values – and that’s a big if – people can count on homeownership in their future, even in hot markets.”

Indeed, respondents from the Miami metro market gave mixed feedback. A larger percentage of renters said they’re interested in buying a home within the next year, as compared to a few months ago. Out of all the South Florida renters who responded to the survey, 21 percent said they’re planning to buy a home in the next 12 months. That data, which was recorded in July, reflects a 1 percent increase of people so inclined from when the survey was last given in January.

Despite that increase, fewer residents think now is the right time to buy a home in the Miami metro — though more than half still say yes. Roughly 63 percent of those surveyed said the market is ripe for buying a home, while a total of 67 percent thought so in January. Strangely enough, fewer people also think now is the time to sell a home, too. Of those who responded, 56 percent said it was a good time to sell a home when they were polled in July. That’s down from 60 percent in January.

Related Articles

Daily Digest Miami

FINCEN renews order looking at cash purchases, Barry Sternlicht is eyeing an economic slowdown: Daily digest

(Illustration by Andrew Colin Beck)

These highly leveraged real estate firms could feel the squeeze in a downturn

Laurie Reader, broker-owner of Laurie Finkelstein Reader Real Estate (Credit: iStock)

Here’s how Zillow Offers will buy and flip homes in South Florida

Zillow CEO Rich Barton (Credit: iStock)

Zillow Offers launches in South Florida

Daily Digest Miami

Ben Carson dismisses concerns about Opportunity Zones, private equity landlord pays $10M for Palm Beach Gardens properties: Daily digest

Daily Digest Miami

Airbnb fights against Palm Beach County’s requirement, what’s next for Barneys: Daily digest

Zillow's CEO Richard Barton

Zillow faces legal action over its co-marketing program

Amid rising demand for mortgages, Zillow launches “Home Loans” division

Amid rising demand for mortgages, Zillow launches “Home Loans” division