Home prices in Miami-Dade County continued to rise during August, but at a reduced pace.
A new report from CoreLogic showed that home prices in the county — including distressed properties — grew by 7.4 percent during August compared to the same month last year.
However, that’s a slight drop in appreciation compared to July, which saw home prices increase by 7.9 percent year-over-year.
The report predicts this leveling off will continue next year, with factors like higher mortgage rates and more inventory of single-family homes putting the brakes on demand.
But that’s not necessarily a bad thing, experts say. The real estate boom during 2013 and 2014 saw double-digit increase in home prices, a pace that some would say is unsustainable in the long-term.
Statewide, home prices grew 8.1 percent year-over-year during August. Nationally, the growth was by 6.9 percent, according to the report.
“Home price appreciation in cities like New York, Los Angeles, Dallas, Atlanta and San Francisco remain very strong reflecting higher demand and constrained supplies,” Anand Nallathambi, president and CEO of CoreLogic, wrote in the report. “Continued gains in employment, wage growth and historically low mortgage rates are bolstering home sales and home price gains. In addition, an increasing number of major metropolitan areas are experiencing ever-more severe shortfalls in affordable housing due to supply constraints and higher rental costs. These factors will likely support continued home price appreciation in 2016 and possibly beyond.”