Housing prices up in S. Florida

Market shows strength in 2017

Home prices increased across South Florida in January, yet another sign of strength in the housing market.

Broward County’s median price for existing, singlefamily homes last month was $311,250, up 10 percent from a year ago, the Greater Fort Lauderdale Realtors said Wednesday.

In Palm Beach County, the median was $310,000, a level that was 9 percent higher than last year, according to the Realtors Association of the Palm Beaches.

Miami-Dade County’s median price also was $310,000, a 15 percent jump, the Miami Association of Realtors said.

Strong demand and a lack of quality listings have driven prices higher in recent years. Statewide, the median price rose 10 percent to $220,000. The median means half the homes sold for more and half for less.

“Florida’s housing market continues to show positive momentum,” Florida Realtors President Maria Wells said in a statement. “While existing inventory remains tight, Realtors across the state are reporting interest from both buyers and sellers — and with interest rates expected to rise over the next few months, now is certainly a good time to take action.”

Broward posted strong monthly home sales in 2016, but buyer enthusiasm was muted in January. The county had 982 single-family homes trade hands, down 5 percent from a year earlier.

Palm Beach County fared better, with 1,146 sales representing a 5 percent increase from January 2016. Miami-Dade sales rose 4 percent to 857.

Jeffrey Levine, president-elect of the Realtors Association of the Palm Beaches, said sellers of homes priced at more than $400,000 are losing leverage to buyers as the number of listings accumulates.

But it remains a seller’s market at $400,000 and below because listings are hard to come by, though some first-time buyers and young families are holding firm and postponing ownership because too many of the homes need major work, Levine said.

“At today’s prices, firsttime buyers shouldn’t have to go in a home and put another $50,000 or $100,000 to renovate,” he said.

In the condominium market, median prices in January increased 8 percent in Palm Beach and MiamiDade counties to $150,000 and $222,250, respectively. Condo sales inched higher in Palm Beach and Broward but dropped 10 percent in Miami-Dade, where supply is outstripping demand.

Ken Johnson, a real estate economist at Florida Atlantic University, said he’s surprised at the still-robust rate of home price increases in the tri-county region. He and other analysts expect prices to slow amid rising interest rates and more homes listed for sale.

However, Johnson sees a market already starting to soften. He said the likelihood of successful sales transactions is declining based on an FAU analysis of multiple listing service data, economic trends and publicly available figures from the Federal Housing Finance Agency.

“A lower likelihood leads to increased inventory, which will eventually lead to a slowdown in prices,” he said.