South Florida home prices continue to slump in May

Miami skyline
Miami skyline

A chill is in the air for South Florida’s housing market, which is starting to see price growth level out after years of exploding values.

The latest report from S&P Dow Jones Indices shows South Florida’s home prices rose moderately in May, though it was still one of the nation’s top 10 markets for swelling housing costs.

According to the index, homes in the region grew 6.6 percent more expensive during May compared to the same month last year.

While that’s still a significant bump, it’s a long way off from the double-digit appreciation seen in 2013 and 2014, when South Florida’s housing market was rocketing upward from the depths of the recession.

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It’s also a far cry from the price explosion occurring in the hip city of Portland, Oregon. For last few months, housing values there have risen by more than 10 percent year-over-year. And the latest report for May shows prices again spiked 12.5 percent year-over-year, making it the No. 1 market in the nation for price growth. Seattle, Washington, wasn’t far behind with 10.7 percent, followed by Denver, Colorado, with 9.5 percent.

Over the last year, the Pacific Northwest has been quite strong while prices in the previously strong spots of San Diego, San Francisco and Los Angeles have seen more modest increases,” David Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices, wrote in the report. “The two hottest areas during the housing boom were Florida and the Southwest. Miami and Tampa have recovered in the last few months while Las Vegas and Phoenix remain weak.”

As market analysts recently told The Real Deal, home prices in South Florida — and especially Miami — are beginning to slow their rise amid falling sales. — Sean Stewart-Muniz