Home prices in Miami-Dade, Broward and Palm Beach counties rose 7.1 percent year-over-year in August, according to the closely watched S&P CoreLogic Case-Shiller Index.
That was better than the national average of 5.3 percent. But the local housing market has cooled significantly in the last year because of a strong dollar and weak global economy.
Major metro areas that saw higher price jumps than Miami were Portland, Oregon (11.7 percent), Seattle (11.4 percent), Denver (8.8 percent), Dallas (8.1 percent) and Tampa (7.6 percent). From July to August, Miami home prices went up .4 percent, just shy of the national average of .5 percent.
As in many cities, the slowdown has hit South Florida luxury real estate harder than the rest of the market. Tight inventory for affordable homes is leading to bidding wars and escalating prices.
“Home sales are well short of previous cyclical peaks, but homebuilders have been very cautious with their development programs,” Ian Shepherdson, chief economist for Pantheon Macroeconomics, wrote in a research note. “As a result, inventory remains very tight and home prices are trending higher.”