DataMarkets & Economy

First American: Miami Real House Price Index drops

Homes in Miami getting more affordable after considering better wages and diminishing interest rates
  • First American has released its Real House Price Index, which adjusts home prices based on wages and mortgage rates.
  • First American found real house prices in the U.S. are 38.5 percent below their peak seen in 2006 and 17.3 percent lower than 2000.
  • In Miami, the real price index is 83, down 0.2 percent monthly and 1 percent quarterly.

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First American has released the newest edition of its Real House Price Index, which reflects inflation factors such as shifts in income and mortgage rates. According to the report, the influence of better wages and declining interest rates shows that even though prices are close to peak in many major metros, consumers are gaining buying power. Despite reports of affordability waning in major metros across the nation, First American found real house prices are 38.5 percent below their peak seen in 2006 and 17.3 percent lower than 2000. Without factoring income and interest rate changes, First American reports home prices are just 2.6 percent away from the 2007 housing peak. First American says foreign financials are helping affordability in the U.S. as more investors are turning toward U.S. Treasury Bonds. As a side effect, treasury yields are keeping mortgage rates low for prospective homebuyers. Miami shows improved affordability The Miami Real House Price Index i...