According to data coming straight from S&P/Case-Shiller, the prices for homes in the Miami region have been on the rise. In fact, the price of homes rose by 13.2% between May of 2013 and May of 2014. They show that there has been relatively stable and steady growth over the past year of more than one percent each month. While they are strong, it is important to take a realistic look at the growth, and to realize that it is slowing over what it has been the past couple of years.
Is Slowing a Bad Thing?
It is important to remember that just because the growth rate is slowing down a bit in Miami and other areas, that’s not always a bad thing. The growth hasn’t been stagnated. This means that even though it’s somewhat slower, the prices still appreciate but at a slower rate. In fact, the city and surrounding area is doing better than the rest of the United States in respect to the home price increases. It is important to keep this in mind.
Something else that is important to remember is that a beginning of a slow down period for the real estate market at this time is natural. It went through a recent big recovery phase, and now that things are getting back to normal, having slightly slower price increases is predictable. It is actually a good thing, as it ensures that the market does not get into a “buuble” like state, which is what happened seven years ago.
Will the Homes Ever Reach Record Highs Again?
While it’s impossible to predict the future, one has to think about where the city of Miami, as well as the United States will be financially in the upcoming years. It is also important to consider what will happen in all of the other countries with foreigners who like investing in Miami properties. If those countries have their own financial issues, as Argentina is going through right now, then it could put a bit of a damper on the sales. It all depends on a wide range of different factors.
However, experts in the field, not to mention the developers and realtors who are working in Miami, have a great feeling about the state of real estate in the South Florida. They feel that within about six years, the prices of homes should be about the same as they were before the recession. It just takes time to recover entirely, but it is inevitable.
Consider just how much money and effort so many developers are putting into completing their current properties and building new properties all around South Florida. Since they are building these new properties, and they have presales, it shows that people still have quite an interest in buying properties in the area. With all of the projects coming up in the next couple of years, it really does not seem as though the Miami real estate market is in any trouble at all. It’s just a matter of time before full recovery.