Miami area real estate expects to see a 5.2% jump in value, but it lags behind the country | Real Estate

Miami-Dade County residents can look forward to another 5.2% jump in the value of their properties over the next 12 months, according to a recent study by Zillow. That increase is slightly below what the national average has been since 1975.

At 5.2%, the Miami-Dade-Fort Lauderdale-Pompano Beach metro area doesn’t even crack the top 50 locales for increased value in the study by Zillow, the country’s most-visited real estate website, which uses its Home Value Index to account for the scoring methods.

But positive gains are always welcome.

Analysts say the lack of homes available to sell is what is helping support home price growth.

According to the report, Zillow economists in February thought U.S. home prices had bottomed out and would only climb 0.5% over the next 12 months. But, lately, home prices stopped falling, and between February and June, actually rose an average of 4.8%.

Zillow’s latest revision predicts U.S. home prices will rise 6.3% over the coming 12 months, above the 5.5% annual increase that national home prices have averaged since 1975.

Its forecast model predicts that 48 of the nation’s 200 largest housing markets will see increases of 7.0% or greater during the next year.

Four of those areas are in Florida: Deltona-Daytona Beach-Ormond Beach and Port St. Lucie (both 8.3%); North Port-Sarasota-Bradenton (7.1%); and Melbourne-Palm Bay-Titusville (7.0%).

The top three overall: Baton Rouge, La. (9.8%); Tyler, Texas (9.3%); and Macon-Bibb County, Ga. (8.9%).

The common denominator among most of the top 48 metro areas, at least, is “tight inventory levels and less deteriorated affordability.”

Other Florida areas to note: Jacksonville came in at 5.3%; Orlando at 5.0%; Tampa at 4.8%; and Fort Myers-Cape Coral at 3.6%.

On a cautious note, the report also indicates that Zillow analysts have been “bullish” in the past with their forecasts. For example, they thought national home prices would skyrocket some 17.8% between February 2022 and February 2023. However, according to the Zillow Home Value Index, national home prices rose just 4.4% on average in that span.