The Standard & Poor’s/Case-Shiller 20-City Index of home prices rose 5.6 percent from August 2013. The index, developed in the 1980s by economists, is made up of three smaller indexes and measures the prices changes in single-family, detached residences, or houses. One component of the total index is the 20-city composite index, which includes the following U.S. cities: Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, New York, San Diego, San Francisco, Washington DC, Atlanta, Charlotte, Cleveland, Dallas, Detroit, Minneapolis, Phoenix, Portland, Seattle and Tampa.
The year over year reading of 5.6 is down from over 6 percent in July and well below the double digit gains recorded in the beginning of the year. As discussed in yesterday’s post, the supply of existing homes on the market is on the rise, helping keep price increases in check. The 20-city index has seen faster slowing price gains than the index as a whole because large cities, like Miami, have seen more significant price gains coming out of the crisis than have more rural areas.
According to Stan Humphries, chief economist at real estate website Zillow, this slowdown is not a bad sign, but rather an indicator of a stabilizing market. “In housing, boring is better,” he says. “As appreciation cools and more inventory comes on line, buyers will start to gain a more competitive advantage, after years of sellers being in the driver’s seat. Looking at individual cities, Miami saw the highest gain in prices at just over 10 percent, taking the top spot from Las Vegas.
Demand for Miami real estate, both residential and commercial, continues to expand. If you, or your business, are interested in properties in the Miami real estate market please contact a RE/MAX agent today about the potential possibilities!