Ft Lauderdale Real Estate News 5/3/16
Fort Lauderdale Home Prices Showing 8.4% Annual Appreciation
Florida and South Florida Perspective
The CoreLogic HPI Report is obviously taken from a national perspective.
Located in Fort Lauderdale and Broward County, we focus on that market. As a result we like to take a moment and focus on those local stats.
According to this report – as usual – Florida and the South Florida real estate markets appeared among the top five posting the largest year-over-year price increases,
Home values in the state of Florida went up 9.3% from March to March, putting it fourth on the list among states showing the greatest year-over-year appreciations.
The South Florida reporting area encompassing Miami-Dade, Broward and Palm Beach Counties placed third on the list of metros, shows an annual increase in home prices of 8.4%
This is a typical pattern. Every time new real estate statistics are released the state of Florida and the South Florida reporting area are almost always in the top five or the top 10, but seldom at the very top of the list. Other states rotate in and out, getting hot and then cooling off as their housing cycles. But Fort Lauderdale and the Sunshine State are almost always among the national leaders.
In addition to past performance, this CoreLogic Report also offers projections for the next year of home price growth. Home values in South Florida are projected to increase 7.1%, and across the state 8%
National home prices increased 6.7 percent year over year in March 2016, according to the latest CoreLogic Home Price Index Report. While the HPI has increased on a year-over-year basis every month since March 2012, prices are still 5.3 percent below the April 2006 peak. Adjusting for inflation, U.S. home prices increased 7 percent year over year, and are 18.4 percent below their peak. Home prices have risen 39.1 percent since bottoming out in March 2011.
Home prices including distressed sales increased 6.7 percent year over year in March 2016 and remained 5.3 percent below the April 2006 peak.
Washington had the largest year-over-year price growth of any state in March 2016.
Appreciation slowed in some oil markets such as in several Texas metro areas: Houston-The Woodlands-Sugar Land logged a 6.1 percent year-over-year gain; Midland logged a 3.6 percent increase; and Odessa logged a 0.5 percent gain.
Looking at the year-over-year HPI growth for the 25 highest appreciating states in March 2016 along with their highest and lowest historical appreciation rates. Washington showed the largest HPI gain of all states in March 2016 with a 13 percent year-over-year increase, followed by Colorado (+10 percent), Oregon (+10 percent) and Florida (9.3 percent). All states and the District of Columbia posted year-over-year appreciation. Nevada home prices were the farthest below their all-time HPI high, still 29.7 percent lower than the state’s March 2006 peak.
Looking at the year-over-year HPI change in select oil-patch areas for March 2016 compared with March 2015. Home prices continued to increase in these areas in March 2016, though the rate of increase slowed for the three Texas metropolitan areas. The slowdown in appreciation was the largest for Midland, Texas, which had a year-over-year increase of 9.4 percent in March 2015, but only a 3.6 percent annual gain in March 2016. Midland has the highest concentration of oil employment of all metropolitan areas in the U.S.
© 2016 CoreLogic Insights Blog
Ft. Lauderdale Real Estate One of Strongest Markets in U.S. for Home Price Appreciation
Home prices in the United States rose for the 49th consecutive month in March. Compared with March of 2015, home prices rose 6.7%, including the sales of distressed properties. The year-over-year February increase was 6.8%. Month over month, March home prices rose by 2.1% from February prices that had risen 1.1% over January prices.
No state posted negative home price changes in March, and 12 states reached new highs: Alaska, Colorado, Hawaii, Louisiana, North Carolina, Nebraska, New York, Oklahoma, Oregon, Tennessee, Texas and Washington.
The data were released Tuesday by CoreLogic in its Home Price Insights Report for March.
Including sales of distressed properties, the five states posting the largest year-over-year price increases in March were Washington (13.0%), Colorado (10.0%), Oregon (10.0%), Florida (9.3%) and New York (8.2%).
Excluding sales of distressed properties, the five states posting the biggest price increases over the past 12 months were Washington (12.6%), Oregon (10.6%), Colorado (9.6%), New York (9.0%) and New Mexico (up 8.7%).
The five states with the largest remaining peak-to-current declines, including distressed transactions, were Nevada (29.7%), Rhode Island (25.9%), Florida (24.9%), Maryland (23.6%) and Arizona (23.4%).
Peak home prices occurred in April 2006 and current prices remain 5.4% below that peak. Including distressed sales, CoreLogic forecasts national single-family home prices to reach a new peak in April 2017.
CoreLogic’s chief economist said:
"Housing helped keep U.S. economic growth afloat in the first quarter of 2016 as residential investment recorded its strongest gain since the end of 2012. Low interest rates and increased home building suggest that housing will continue to be a growth driver."
CoreLogic has forecast that home prices will rise 0.7% month over month in April and rise by 5.3% between March 2016 and March 2017. Both projections include distressed sales.
© 2016 Wall Street Journal 24/7