Ina Paiva Cordle”s reporting in The Miami Herald provides great context for the South Florida real estate market and reaffirms what we realtors are experiencing in the market. Real estate in South Florida is affordable and there is a terrific variety of properties for sale, and high rates of absorption have lowered inventory levels creating a more balanced market. Many reports are suggesting that home values may have hit bottom in 2011, retreating to 2002 levels, but are creeping upward now.
Here are how March home values for some areas compare to 2011.
|Sunny Isles Beach||$260,900||+13.5%|
Source: Zillow’s Home Value Index
Home values in South Florida rose 1.1 percent year-over-year in March, to $141,300, after reaching bottom in late 2011, according to Zillow’s Home Value Index. Only Phoenix had a higher year-over-year increase, 2.8 percent.
In another report, released by S&P/Case-Shiller, Miami ranked among just five cities in the nation to show an increase in annualized housing prices in February, up 0.6 percent from January, and up 0.8 percent year-over-year.
South Florida’s gains, Zillow’s Humphries said, reflect an uptick from the steep declines experienced since the economic downturn, which set values in South Florida back to July 2002.
The affordability of South Florida real estate has become a beacon to investors, international cash buyers, second home-purchasers and retirees, who have led the surge upward. Zillow’s index predicts that values in South Florida will rise another 5.6 percent during the next year.