Home prices in the United States have been climbing recently due to increases in demand. High home prices and busier home buyers all indicate that the economy is strong. We recently learned the good news that the likelihood of a decline in home prices across the United States is low. However, the chance of a drop in Florida home prices specifically is even more unlikely, according to the Spring 2016 Housing and Mortgage Market Review published by Arch Mortgage Insurance Company (Arch MI).
This report uses recent economic and housing market data to gauge the likelihood that home prices will lower in the next two years. In 24 of Florida’s counties including Miami-Dade and Broward, the report said that the risk of a price decline is only 2 percent. In others, it is still as low as 3 percent. Keeping prices up mean good things for the economy and anyone involved in real estate, including homeowners, buyers and sellers.
“I’m bullish,” said Ralph DeFranco, chief economist for Arch in the Sun Sentinel. “I think it’s a good time to buy. Interest rates are low, so buyers should lock in while they can.”
The report showed that overall, most states in the US do not risk having falling home prices.
“Apart from a subset of energy extraction states, home prices should rise faster than inflation thanks to strong fundamentals,” says Dr. Ralph G. DeFranco, Arch MI’s Chief Economist. “Positives include strong affordability, home prices generally below their historical relationship with incomes, U.S. job growth of more than 2 million jobs a year, and a low levels of construction relative to growing demand.”
Alaska, North Dakota, Wyoming and West Virginia currently have the highest risk of home prices declines, where employment is weak as home prices rise. Fortunately, a drop in Florida home prices is unlikely.
Excited about the strength of Florida’s market and ready to buy on of our gorgeous Miami homes? Contact a RE/MAX Paradise agent today!