FORT LAUDERDALE, Fla. — Homeowners across South Florida saw their homes values rise over the past year, despite the market taking a turn, new data shows.
In South Florida, home values have increased upward of at least 13% over the past year, depending on the area, despite rising interest rates cooling the market significantly, according to an analysis from RedFin, a national real estate brokerage.
“A lot of it is people are still relocating to Florida from other states for tax shelter and for weather,” said Alex Platt, with the Platt Group at Compass in Boca Raton. “For our listings for sale, very often we are seeing interest from people that are flying in for a couple of days to view and purchase a home.”
In the Fort Lauderdale metropolitan area, home values increased by about 16% to over $353 billion in December when compared to the prior year. And in the West Palm Beach metropolitan area, home values increased by 13% to over $423 billion.
They rose even more in the Miami metropolitan area. There, home values rose by 19.7% to $468.5 billion in December when compared to the year prior.
It represents the largest annual percentage increase among all the metros analyzed by RedFin.
“The Florida market will likely be more resilient as long as it provides an attractive and affordable alternative to places like New York, Chicago, and Los Angeles,” according to RedFin.
And for the most part, Miami’s home values have held steady: December’s home values are almost the same as when they peaked in June 2022 to $472 billion.
On a national level, the total value of homes in the United States reached about $45.3 trillion dollars in December 2022, the last available estimate, according to Redfin.
It’s a 6.5% increase compared to the same time period previously.
But the slowing market has started to affect it: The overall value of homes in the United States declined by about 4.9% from June to December, representing the largest decrease of that time period since 2008.
“The housing market has shed some of its value, but most homeowners will still reap big rewards from the pandemic housing boom,” said Redfin Economics Research Lead Chen Zhao. “The total value of U.S. homes remains roughly $13 trillion higher than it was in February 2020, the month before the coronavirus was declared a pandemic.”
