Reports on house prices in Miami in March reflect the confirmation of an ongoing upward trend started in 2012. With a notoriuos 7.1 percent increase in the figures compared to March 2014, it is fact that the market in Miami show signs of being on the path to a permanent recovery. Moreover, same results are being observed all around the country.
An increasing demand of homes in Miami is one of the key points that explain the numbers. There are more buyers looking for properties and they find very limited units available. Additionally, all studies suggest that home values will keep on this track, at least in the short term. There have been significant move especially in the luxury sector with a high demand and price growth far above the average. The good prospects for economy, including the job market, and demographics are also helping to push prices up.
Florida is among the states leading the growth in home prices. In general, this situation is considered a good sign for the market. There are some reasons to think that the trend is going to continue next year as long as interest rates remain low, which make mortages cheaper than ever. There is also an increase in rents and many buyers from overseas willing to get their dream home in Florida. In addition, on the supply side there have been very few new constructions. On the other hand, there are some voices explaining that long-term trend is difficult to predict with current data.
In the recession years, construction of single-family houses halted and the following years there was a minimal construction of new units. This means that existing houses available on the market are more valuable. In addition, many properties availabe were let for rent and then the owners are unable to put them back in the market.
Housing markets, after the strong correction in the period of 2007-2009, are still offering attractive prices and some buyers see the opportunity to buy something that they could not afford some years before. However, as prices rise, investors will find real estate market less attractive and appreciation is more likely to slow.