The most recent Standard & Poor’s/Case-Shiller 20-city home price index, which was released late last month, shows continued stable gains in the price of US homes over the past few months. As you may remember for our recent post, this index measures the price fluctuations of residential real estate in order for economists to easily gauge the health of the real estate market. This most recent report shows home price gains for 2014 being very subtle and slow, particularly in comparison to rapid growth in the past two years. These lackluster gains may seem foreboding, however on the contrary the stability in the market is exactly what financial experts were hoping to see.
Although overall the market was steady, October marked the greatest increase in sales of existing homes nationwide all year. This surge is indication of the market’s revitalization since the slight dip last spring and predicts even more good things to come in the new year.
Good news for buyers! Recent weeks saw a decline in mortgage rates, from the average rate on a 30-year fixed mortgage dropping from 4.01 to 3.99 percent. This elevates the concern that the recent discontinuation of the Federal Reserve’s bond-buying stimulus campaign would cause them to rise.
Miami maintained its lead among the 20 cities covered by the index, with the highest 12-month increase in home prices. Eighteen of the 20 cities saw a slower rise in the average price of homes during 2014, but Miami’s 10.3 percent jump reflects the growing demand for real estate in the area. The appeal of Miami is obvious, and chilly Northern temps are apparently making the sunny, white sand beaches of South Beach seem all the more tempting.
With mortgage rates dropping and demand for Miami real estate continuing to grow, now is the best time to see what amazing possibilities are available. If you want to check out what Miami has to offer, whether it is commercial or residential real estate, contact a RE/MAX agent today!