In December, Prices For Homes In Miami Rose The Fastest Nationwide

Home prices in Miami rose faster than any other major U.S. city in December, according to the S&P/Case-Shiller Home Price released today.

Miami home prices rose 0.7% for the month. Nationally, home prices were down 0.1% on average for the month.

For the full year 2014, Miami ranked second nationwide with an 8.4% rise in prices, behind top-ranked San Francisco’s 9.3% gain. The national average was a 4.6% increase.

S&P/Case-Shiller also reported that on average, home prices in Miami remain 31% below the peak prices reached in 2006.

 

 

 

 

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anonymous
5 years ago

What about sales volume? It was down for the month vs Dec 2013.

Anonymous
5 years ago

What about skewed statistics? That volume doesn’t account for the thousands of sold preconstruction units.

Also, quality>quantity

XVS
5 years ago

Well, the headline says “Prices increased”, which means that the article is about prices, not volume. Stock market had tripled from its bottom in 2009, and every day during these 5+ years naysayers were saying “But volume is low”. And home prices will keep increasing on “low volume” for many years. Real estate prices track inflation, not volume, and inflation in America is 3-4%/yr (nobody in their right mind would believe government numbers of 1-2%). In fact, volume will pick up when prices start approaching bubble territory.

david m
5 years ago

i don’t really get it. san francisco, austin, dc, nyc and boston – the other cities seeing this sort of demand – have bananas economic fundamentals. miami is second/third tier but the prices are on the same track. the weather premium?

Fredric
5 years ago

Miami’s economic fundamentals are not second or third tier. That is the stereotyped image of Miami that is believed by countless persons nationwide and to as lesser extent, worldwide. Tourism is a dominant industry in Miami and South Florida but there are other sectors which are not as high profile in the region but are still of major importance. International trade and finance, a small but rapidly-growing biotech industry, Latin American and regional HQ’s for countless multinational corporations, hedge funds and other financial services firms and on and on. And don’t forget the by-now-well-established fashion modeling industry of Miami Beach or Miami’s by now vast and growing Spanish language television production and communications community. There is much in Miami that does not yet stand out in the American psyche in the same way as do the high profile economic powerhouse reputations of Austin, San Francisco/Silicon Valley, Boston, NYC, et al.

However, what is driving up the housing prices may have more to do with foreign investment in upscale and luxury residential development in and around downtown Miami than any other single factor. Wealthy Latin American investors have long seen high-end Miami real estate as a safe investment and a hedge against political instability in their home countries. More recently, they have been joined by growing numbers of similar financial status from such diverse locations as Russia, other European countries, Asia and some nations in the Middle East.