Case Shiller Home Price Index: Miami Prices Up Slightly

posted on November 24th, 2009 filed under: Real Estate News

The S&P Case Shiller home price index for September 2009 was released today, and shows that prices gained slightly in Miami, up 0.5% (or 0.6% seasonally adjusted) from the month of August.  This comes on the heels of a 1.1% gain in August.  Miami home prices have risen for several months now, according to this index.

Real estate prices in Miami are still lower than a year ago, but the year-over-year decline is shrinking.  Month-to-month gains show up sooner than, and eventually would turn into, year-over-year gains.  Whether the trend will continue is the question.  In Miami as elsewhere, the Case-Shiller index shows a smaller gain for September than for August.  A number of cities slid back to declines in September after gains in August.

Miami home prices have enjoyed decent gains for a few months, but doubt remains about whether prices have turned the corner for good.  Government handouts for home buyers may have helped stabilize real estate prices, raising questions about the true health of the underlying market.  And of course, other measures such as price-income ratios and buy-rent comparisons still make the idea of buying residential real estate in Miami a challenge for any rational mind.

Note that the Case Shiller index tracks same-home sales, which usually lessens errors that can be introduced by changes in the mix of homes sold.  But in these extraordinary times, when a very large proportion of Miami real estate sales consists of foreclosures and other distressed sales, price action in that segment of the market takes on outsized significance.

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posted by // This entry was posted on Tuesday, November 24th, 2009 at 9:59 pm and is filed under Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed.

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