S. Florida home prices rise in July

But increase still trails most of country

Home prices in South Florida rose 5.1 percent in July from a year ago — one of the smallest annual increases in the country, a new report shows.

The S&P CoreLogic CaseShiller home price index tracks prices in 20 major metropolitan areas nationwide. Only four other metros had smaller price gains than South Florida: Chicago, Cleveland, New York and Washington, D.C.

For the 11th month in a row, Seattle was a seller’s dream, boasting the nation’s biggest price gain. Prices there rose 13.5 percent in July, well ahead of No. 2 Portland, Ore. (7.6 percent).

In Tampa, the only other Florida metro tracked by the index, prices rose 7 percent in July. The national average increase was 5.9 percent.

South Florida led the nation in price increases in August, September and October 2014. Since then, the gains in the tricounty region have cooled.

“The housing market will face two contradicting challenges during the rest of 2017 into 2018,” David M. Blitzer, chairman of the index committee, said in a statement. “First, rebuilding following hurricanes across Texas, Florida and other parts of the South will lead to further supply pressures. Second, the Fed’s recent move to shrink its balance sheet could push mortgage rates upward.”

Prices are on the rise in South Florida and elsewhere due to a dearth of home listings. The lack of listings also has served to hold down sales volumes.

About half the properties for sale nationwide are priced in the top one-third of the market, according to Svenja Gudell, chief economist for the Zillow website. That intensifies the competition for starter and “move up” homes, pushing prices higher and hurting affordability.

The housing market “looks largely healthy from a 50,000-foot view” because prices are rising and mortgage rates are still low, but the situation is far from ideal for buyers, Gudell said in a statement.

“It’s certainly a great time to be a home seller,” she said. “But when so many sellers need to then turn around and become buyers, the decision to list a home for sale and willingly enter that buying fray is the worst kind of Sophie’s choice.”

Howard Elfman, broker associ-