April marked yet another month where home prices in South Florida grew more expensive. But the rate of that growth has cooled down in recent months, indicating a shift in the market may be on its way.
According to the newly released S&P/Case-Shiller Home Price Indices, the cost of a home in South Florida grew 6.4 percent more expensive year-over-year in April. Between March and April, prices rose by a much more marginal 1.1 percent.
That rate of growth places South Florida in eighth place for the nation’s fastest rising home prices for April. It’s a far cry from the days of double-digit appreciation in 2013 and 2014, when prices in South Florida — and especially in Miami — skyrocketed from the depths of the market crash.
Market analysts like Anthony Graziano, whose firm Integra Realty Resources authors a quarterly real estate report with One Sotheby’s International Realty, has called those rising prices “value recovery” as the market picks itself up from the 2008 crash, when values plummeted.
Others have begun to decry South Florida’s lack of affordable housing, calling it a crisis as rising home prices distance themselves from wage growth.
And with volatile home sales in the tri-county area, South Florida could begin to see prices begin leveling off or even falling within the next year.
While values are still climbing here, albeit at a slower rate, other regions in the U.S. are experiencing similar price explosions.
Housing costs in Portland continued their upward tear during April with a 12.3 percent hike year-over-year, which means home prices there are growing more quickly than anywhere else in the nation. Seattle wasn’t far behind with a 10.7 percent jump, followed by Denver with 9.5 percent and Dallas with 8.6 percent. — Sean Stewart-Muniz