Real Estate News

Red-hot South Florida home prices are cooling off

A home for sale in Miami last year.
A home for sale in Miami last year. AP

So far in 2016, South Florida home prices are growing at the slowest pace since the real-estate market began to recover four years ago.

Home prices in Miami-Dade, Broward and Palm Beach counties rose 6.2 percent between March 2015 and March 2016, according to the closely watched S&P/Case Shiller Home Price Indices.

They grew 8.7 percent between March 2014 and March 2015, and at a double-digit clip for much of 2013 and 2014, fueled mainly by red-hot demand from foreign investors. But a strong dollar and troubled economies abroad have stymied the flow of cash into local real estate.

6.2 percentAnnual rise in South Florida home prices

Residential home sales fell in Miami-Dade in April, according to Realtors’ data.

Weak demand could help make homes more affordable for locals — if wage growth keeps picking up and developers start building more units for the lower tiers of the market.

The nation’s hottest housing markets are in Portland (12.3 percent), Seattle (10.8 percent), Denver (10 percent), San Francisco (8.5 percent) and Dallas (8.5 percent). Home prices in the Tampa area (7.6 percent) also grew faster than they did in Miami in March.