Home prices continue to rise in the area of South Florida. Even better news is that the residential real estate price increases are starting to slow down. This means the working and middle classes in this part of the state might see more affordable properties over the next few years. The working and middle classes have essentially been locked out of Florida's housing boom up to this point due to the fact that home prices are soaring above wages.
Housing prices in the counties of Palm Beach, Miami-Dade and Broward increased by almost half a percent in July over the previous month. These prices were up more than 7 percent from last July. When the housing market was robust in 2013, prices increased by a whopping 2 percent a month or more.
These price gains have slowed down since then, partly because of a strong U.S. dollar. Plummeting currencies overseas have hurt the same foreign buyers who were driving the housing boom over the past few years. In particular, cash residential real estate sales, which are a good indicator of foreign buyer activity, have dropped consistently since Asian, European and Latin American economies have run into trouble. Over 53 percent of home sales in the Miami-Dade area were cash sales in June, which was a drop from nearly 58 percent the previous June.
With the residential real estate market showing promise in the Sunshine State, an increasing number of people may be interested in purchasing their dream homes. This is good news not only for buyers in Florida but also for sellers who are interested in unloading their properties and finding new homes. Proper legal guidance may help both parties to successfully navigate their real estate transactions in a way that will enable them to achieve their unique end goals.
Source: Miami Herald, "South Florida home prices continue slow growth", Nicholas Nehamas, Sept. 29, 2015