Home prices rise

Market may be starting to cool

But some see a warning in the S. Florida trend.

Home values increased last month in South Florida, but that doesn’t necessarily mean the market is all red roses and full-price offers.

Palm Beach County’ s median price for existing, single- homes in April was $327,000, 7 percent higher than a year ago, the Realtors Association of the Palm Beaches said Wednesday. Broward’s median also rose 7 percent, to $330,000, according to the Greater Fort Lauderdale Realtors.

Miami-Dade County’s median jumped 12 percent to $320,000, the Miami Association of Realtors said.

Single-family sales rose 4 percent in Miami-Dade but were flat in Palm Beach County and dropped 4 percent in Broward.

Economists attribute higher prices here and across the country to strong competition for low numbers of starter and move-up homes.

Still, even as prices rise, South Florida real estate observers say the market lacks punch. Buyers are more discriminating as some sellers stubbornly hold on to unrealistic expectations about what their homes are worth.

“Everyone is of the belief that the trend is going up, but we aren’t seeing homes selling like theywere two or three years ago,” said Michael Citron, an agent with Re/Max ParkCreek in northwest Broward.

Randy Bianchi, co-owner of Paradise Properties of Florida in West Palm Beach, said he recently had two clients each make two reasonable offers on homes. Three of the sellers stood firm and refused to negotiate off the list prices, while one seller lowered his asking price by just $1,000, Bianchi said.

“Sellers are pushing the envelope again, like they were in 2005 and 2006,” he said. “I don’t think we’re going to see another collapse of the market, but I do think we will see some softening.”

The single-family median price in Florida was $234,900, up 10 percent from April 2016, the Florida Realtors said. Nationally, the median rose 6 percent to $246,100, according to the National Association of Realtors.

The median means half the homes sold for more and half for less.

Sales of existing condominiums fell in all three South Florida counties, but median prices rose. Palm Beach County’s median inched up 7 percent to $165,000; Broward’s increased 10 percent to $148,500; and Miami-Dade’s climbed 7 percent to $229,000.

Summer Greene, general manager of Better Homes & Gardens Florida 1st in Fort Lauderdale, Plantation and Jupiter, said the housing market is missing a boost from young professionals and families who can’t afford to buy or who have struck out in their attempts at home ownership.

“They’re discouraged,” Greene said. “They’ve made four offers and didn’t get any of them. So they say, ‘I might as well rent for another year.’ ”

Real estate website Trulia published a study Wednesday that shows buying is more affordable than renting in South Florida, as long as a buyer stays in the property seven years and puts down 20 percent on a 30-year fixed-rate mortgage.

Buying is 47 percent cheaper in Broward, 46 percent in Palm Beach County and 44 percent in Miami-Dade. Buying was an even better deal in all three counties a year ago, but the gap is narrowing due to rising home prices, higher mortgage rates and flat rent growth, Trulia said.