South Florida saw steady home price increases in November as the tri-county region continued to outperform most of the country, a national housing index shows.
Prices in Palm Beach, Broward and Miami-Dade counties rose 6.1 percent from a year earlier, according to the S&P CoreLogic Case-Shiller index, which tracks 20 metro areas nationwide. U.S. prices jumped 5.6 percent.
The two largest price gains were in the Pacific Northwest. Seattle led all areas for the third consecutive month, with prices rising there by 10.4 percent. Portland, Ore., was second at 10.1 percent.
Denver (8.7 percent), Tampa, Dallas (both 8.1) and Detroit (6.6) were the other metros with higher increases than South Florida. Atlanta tied with South Florida with a 6.1 percent increase in November.
Palm Beach, Broward and Miami-Dade counties have had some of the nation’s largest price increases for more than two years. The three counties last topped the index in August and September 2014.
David M. Blitzer, chairman of the index committee, said in a statement that economic growth since the presidential election could boost mortgage rates, which already have been on the rise.
Last week, the Florida Realtors trade group cited Freddie Mac figures showing the interest rate for a 30-year fixed-rate mortgage averaged 4.20 percent in December, compared with 3.96 percent in December 2015.
“Further gains in personal income and employment may increase the demand for housing and add to price pressures when home prices are already rising about twice as fast as inflation,” he said.
Case-Shiller is considered the leading measure of national home values because the index analyzes the price of the same house over time. However, the index lags local Realtor board data by one month.
South Florida’s housing market has slowed over the past year, but a persistent shortage of mid-priced single-family homes for sale has kept pushing prices higher.
Local Realtor figures show the numbers of active listings in Palm Beach and Miami-Dade counties have increased in recent months, though buyers and real estate agents say it’s still difficult to find homes that don’t need significant work.
Broward County’s housing inventory remains especially tight, with fewer active listings than a year earlier.
Michael Citron, a broker at RE/Max ParkCreek in northwest Broward, said move-up and downsizing buyers are hesitant to list their homes for sale.
“They see the low inventory and are afraid their homes will sell fast and they won’t have the right home to move to,” Citron said. “They’re totally nervous and don’t know what to do, so a lot of them are saying, ‘Maybe we should just stay put.’”
