Miami home prices continued to rise this spring, according to a report released Tuesday by in the S&P/Case-Shiller Home Prices Indices.
Selling prices of existing homes rose 6.4 percent in April over the same period in 2015, according to the report. The data covers the Miami metro area — essentially Miami Dade County.
Nationally, the price of existing homes rose 5 percent during the same month.
“The housing sector continues to turn in a strong price performance with the S&P/Case-Shiller National Index rising at a 5 percent or greater annual rate for six consecutive months,” said David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “The home price increases reflect the low unemployment rate, low mortgage interest rates, and consumers’ generally positive outlook.”
But the numbers don’t tell the full story, according to Dr. Svenja Gudell, chief economist for Zillow, an online real estate tracking service.
“Today’s Case-Shiller data shows continued fast growth in the housing market, but there is also a growing divide between the top and bottom of the market that the Case-Shiller numbers don’t reveal,” said Gudell “Home values for the least-expensive homes are growing twice as quickly as they are for the most-expensive homes, and the gap is widening.”
In Miami, the gap is clear. In May, sales for homes in Miami-Dade priced between $200,000 and $600,000 grew 5.9 percent, according to the Miami Association of Realtors. In contrast, homes in the bottom tier ($175,200 and below) grew 12.5 percent.
At the same time, the total number of existing home sales in Miami-Dade slid to 2,435 in May, down 10.4 percent annually, according to data from the Miami Association of Realtors. Earlier this month, Trulia named Miami one of the most unaffordable housing markets by in the country.