Miami tops home price hikes
TALLAHASSEE - For the ninth consecutive month, Miami in April topped other metro areas across the country in home-price increases when compared to a year earlier, according to an analysis released Tuesday.
The Miami area had a 5.2 percent year-over-year increase, according to the S&P CoreLogic Case-Shiller Indices. It was followed by Chicago, with a 4.1 percent increase, and Atlanta, with a 3.5 percent increase.
Tampa, the only other Florida metro area in the analysis, had a 2.4 percent increase.
Although mortgage rates have risen since last year, prices remain strong in part because there are fewer options available for those who can still afford to buy.
Low housing inventory creates competition and pushes prices up.
May's home price index "reinforced the idea that home prices are responsive to interest rate adjustments, as home shoppers continue to push budget boundaries in today's pricey housing market," said Danielle Hale, Realtor.com's chief economist.
"Home price trends are caught in a tug of war between stretched buyer budgets and limited inventory forcing competition despite reduced affordability. With high mortgage rates keeping 1 in 7 homeowners from selling, new listings have lagged far behind what we've seen in prior years, pushing buyers to continue to bring their best offers even as home sales are 20% lower than at this time last year."
Hale said she expects modest price cooling to continue, as affordability will slowly win out, according to a revised forecast for the rest of 2023 from Realtor.com.
The News Service of Florida contributed to this report
