Rising South Florida Luxury Home Prices Good News for Coral Gables Commercial Real Estate Developers and Property Owners

on Tuesday, 03 September 2013. Posted in forte related

Eighteen months in a row we’ve gotten the same news: South Florida home prices are rising. And for 18 straight months, luxury home owners, Realtors, developers and commercial and office landlords in Coral Gables, Coconut Grove, Miami and throughout the region have worn increasingly wide smiles. The worst of the recession seems behind us. Growth is strong and constant.

Gains continue, though not at the heated pace of the recent past, notes the Standard & Poor's / CaseShiller home price index report released this week. From Miami-Dade County through Broward and north to Palm Beach, home prices continued their rise, up almost 15% over this time last year, data reveals.

This isn’t some local phenomenon. Case-Shiller tracks 20 metro areas nationwide, and all 20 showed price increases. The rises seem to be slowing, possible as a result of rising mortgage rates, analysts believe. It gives some insiders cause for pause of an over-heating market. That could be.

Eighteen months in a row we’ve gotten the same news: South Florida home prices are rising. And for 18 straight months, luxury home owners, Realtors, developers and commercial and office landlords in Coral Gables, Coconut Grove, Miami and throughout the region have worn increasingly wide smiles. The worst of the recession seems behind us. Growth is strong and constant.

Gains continue, though not at the heated pace of the recent past, notes the Standard & Poor's / CaseShiller home price index report released this week. From Miami-Dade County through Broward and north to Palm Beach, home prices continued their rise, up almost 15% over this time last year, data reveals.

This isn’t some local phenomenon. Case-Shiller tracks 20 metro areas nationwide, and all 20 showed price increases. The rises seem to be slowing, possible as a result of rising mortgage rates, analysts believe. It gives some insiders cause for pause of an over-heating market.

That could be.

But that home prices across South Florida continue their rise should be good news for property owners, tenants, renters and even shoppers alike. Rising prices translate to a growing, more robust economy.

In Palm Beach County, the median price for existing homes in July was $249,000, up 15% over 2012. In Broward, the figure was $275,000, a 28% rise over the same period. Miami-Dade County was enjoying similar growth.

What does this bode for the region. Some believe caution is in order. Others remain bullish and optimistic that this reflects continued strengthening of the economy. As the owner of Class A commercial and office space in Coral Gables and across Miami, we see signs for cautious optimism. The growing numbers, combined with continued cash purchases from across the Americas and Europe, may help insulate Coral Gables, Miami and greater South Florida from some of the potential impact should the market cool.

But for now, it remains on an upward track. For that reason, we, too, keep our belief on that same track – and an optimistic view of a bullish future.

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