South Florida’s housing market saw another month of price growth in August, though the pace has gradually slowed for most of this year.
The August S&P/Case-Shiller Home Price Indices showed that South Florida saw a 7.4 percent appreciation in home prices in August, year-over-year. On a month-to-month basis, prices grew by 0.4 percent.
That growth puts South Florida in sixth place for increasing prices, with Denver and San Francisco leading the country at 10.7 percent year-over-year. The remaining three top spots belong to Portland with 9.4 percent, Dallas with 8.9 percent and Seattle with 7.6 percent.
Analysts say this slowdown could be a correction in the market, which saw double-digit growth over the past two years — a rate most would call unsustainable over long periods of time.
“Home prices continue to climb at a 4 percent to 5 percent annual rate across the country,” says David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices. “Most other recent housing indicators also show strength. However, September new home sales took an unexpected and sharp drop as low inventories were cited as a possible cause.”