Miami home prices rose 6.7 percent in January, year-over-year, marking the seventh highest increase in the nation, according to the latest S&P CoreLogic Case-Shiller Index.
The newly released report, which tracks 20 major metropolitan areas in the country, shows Miami prices rose 0.3 percent from December to January. That’s lower than the 0.4 percent increase registered from November to December.
The latest year-over-year rise is also below the 6.8 percent figure reported for December, but tops the 6.1 percent increase from November, as well as the 6.5 percent bump in prices S&P CoreLogic Case-Shiller reported in October.
Nationwide, home prices continued to soar in January, with Seattle showing the greatest year-over-year gain of 11.3 percent. Portland followed at 9.7 percent; Denver at 9.2 percent; Dallas at 8.2 percent; Tampa at 8.1 percent; and Boston at 7 percent. Home prices rose 5.9 percent on average nationwide, setting a 31-month high, and up from 5.7 percent the previous month, the report shows.
S&P CoreLogic Case-Shiller attributed the rising prices largely to reduced inventory, but noted that higher mortgage rates may take a toll in the future. Higher prices and rising mortgage rates could shrink the number of households that that can afford to buy at current price levels, forcing prices to level off and decline eventually, the firm said.
Miami home prices have been climbing for more than five consecutive years, according to the latest figures from the Miami Association of Realtors. Single-family home prices jumped 18.8 percent year-over-year to $321,000 in February from $270,221 in February 2016. Condo prices also rose by 6.3 percent, to $220,000 from $206,950, according to the Realtors’ report.
Source: The Real Deal