Standard & Poor’s will release its latest Case-Shiller Home Price Indices tomorrow, and analysts and journalists alike are eagerly awaiting its findings – and what they will suggest for housing prices across the country.
So far, the narrative has been a positive one. CoreLogic’s home price index, which is used by the Federal Reserve in its research, was positive for the third straight month, the FHFA’s index turned positive year-over-year and last month’s Case-Shiller was positive for the first time in seven months.
Miami was one of the shining jewels in the last Case-Shiller (prices were up in the city by more than 3 percent from a year ago), and based on our latest reports on the city’s housing market, it would seem this next set of indices from S&P will only be more positive for Miami.
Emilio Palomo, an agent with Riteway Properties and the Miami chair of the Master Brokers Forum, said everybody he has talked to is anticipating another strong month of home prices in Miami, and not just in the popular coastal neighborhoods.
“There’s a lot of activity in probably 90 percent of Miami,” Palomo said, and the resulting increases in prices is a simple matter of supply and demand. Demand is high in Miami; so high, in fact, that inventory has fallen quite a bit, and as the supply has dwindled, and demand has stayed strong, prices have risen.
Palomo added that the news cycle has played a key role as well. After the boom years cooled down, the evening news was dominated with stories on foreclosures, price declines and job loss; now, the mood is much more positive, and price gains, sales increases and new construction fill the airwaves, and buyers are more comfortable with making the commitments to buy.
All the pieces would seem to be in place for another strong showing for the Case-Shiller (Zillow’s forecasts were notably optimistic), but of course, we don’t know definitively until the indices are unleashed tomorrow. We’ll be reporting on them first thing tomorrow morning, so stay tuned!