Miami Real Estate Anticipates 5.2% Value Increase, but Trails National Average
Miami-Dade County residents can expect their property values to increase by 5.2% in the next year, as reported by Zillow. While this growth rate is slightly below the national average, it still reflects positive gains. However, Miami-Dade-Fort Lauderdale-Pompano Beach doesn’t rank among the top 50 areas for increased property values in Zillow’s study.
Limited housing inventory is a contributing factor in the rise of home prices. Zillow economists originally predicted a meager 0.5% increase in U.S. home prices over the next year. However, between February and June, home prices actually increased by an average of 4.8%. Zillow’s latest forecast calls for a 6.3% increase in U.S. home prices over the next 12 months, surpassing the 5.5% annual average since 1975.
The report highlights 48 housing markets expected to see increases of at least 7.0% in the next year. Florida is represented by four areas: Deltona-Daytona Beach-Ormond Beach and Port St. Lucie (both at 8.3%), North Port-Sarasota-Bradenton (7.1%), and Melbourne-Palm Bay-Titusville (7.0%). Baton Rouge, La., tops the list with a projected increase of 9.8%.
The common factors among the top-performing areas are limited housing inventory and reduced affordability. Other notable property value increases in Florida include Jacksonville at 5.3%, Orlando at 5.0%, Tampa at 4.8%, and Fort Myers-Cape Coral at 3.6%.
However, it’s important to approach these forecasts with caution. In the past, Zillow analysts have overestimated home price increases. For example, their previous forecast predicted a 17.8% increase between February 2022 and February 2023, but the actual increase was only 4.4% according to the Zillow Home Value Index.