The good news for homeowners is that home price growth has continued over the recent year. The not so good news is that this price growth has been decelerating across most of the country. Of course, this is to be expected given the Federal Reserve’s aggressive approach to containing out-of-control inflation. While we are seeing a deceleration in home prices across the country, not all housing markets are created equal. We discuss how some Florida metro markets compare below.
Year-over-year findings
The latest results for the S&P CoreLogic Case-Shiller index of U.S. home prices finds continuing gains. However, the rate of these gains is certainly slowing. In summary, this index looks at nine U.S. census divisions. Overall, a home price gain of 13% was seen through the month of August 2022. While this is still positive price growth, it was less than the 15.6% growth seen through the month of July 2022. In addition, this index analyzes a 10-city composite annual increase and a 20-city composite annual increase. As a point of reference, the results were as follows:
- 10-city composite annual increase = 12.1% (down from 14.9% in July 2022)
- 20-city composite annual increase = 13.1% (down from 16.0% in July 2022)
What about Florida?
The findings from this analysis indicate that Florida still accounts for the top two spots in the country for year-over-year home price growth. Miami came in at the top spot with a year-over-year home price growth of 28.6%. Right behind it was Tampa at 28%. Needless to say, the real estate market is transitioning however Florida continues to attract the most buyers.
Summary
Looking ahead, further deceleration in the housing market is certainly expected. The extent and duration of this deceleration seems to be the classic question. With many economists predicting a continued recession well into next year, it is quite likely that the housing market will feel some pain for the foreseeable future. Of course, the amount of time that it takes to control record-high inflation will be the ultimate driver.
Are you looking to buy or sell real estate in the South Florida market? We can help! Contact one of our friendly team members at Live South Florida Realty, Inc. today! Also, don’t forget to download the free Florida Home Search app for your mobile device!
