- A decline in distressed sales volume is playing a part in Miami's continuing price gains.
- Single-family homes are appreciating slightly more than condos.
- Firm predicts possible upward pressure on demand prior to Fed rate hike.
On a year-over-year basis the Miami-Fort Lauderdale-Miami Beach metro continues to see double-digit increases in home values, and while seasonality has begun to slow price growth the metro still ranks among the top performers nationally.
Spanning August to November the median price of a home rose by 10.5 percent when compared to the same period last year, according to data from Clear Capital. On a quarter-over-quarter basis prices rose by 1.5 percent, the sixth best rate of appreciation nationally among major metros.
In October the median sales price for a single-family home rose by 10.4 percent year-over-year to $265,000, according to the Miami Association of Realtors. Existing condos rose in price by 8.1 percent during the same period to $200,000.
“Single-family home and condominium prices remain at 2004 levels despite four years of consistent year-over-year increases,” according to the association.
Consistent increases have recently occurred as the metro’s volume of distressed closings declines. According to Clear Capital, 24.6 percent of all sales from August to November involved a distressed property. In October, roughly 23.7 percent of all residential sales were distressed, a more than 10 percent year-over-year decline, according to the association.
Clear Capital predicts that in markets like Miami, investors and consumers could push upward pressure on demand in the coming weeks, as they rush to purchase existing inventory at current rates before an anticipated December rate hike from the Fed.