For homeowners in South Florida, now seems a good time to sell their residences and move up to a nicer dwelling or relocate to a more desirable or more convenient place. Thanks to recent robust gains in home prices, home equity in the region hit a 10-year high based on prices of closed sales during the 2017 second quarter.
This most recent reading, which came from Irvine, California-based research firm ATOMM Data Solutions, showed that South Florida homeowners’ equity rose by an average of 45.3 percent or by $77,900. This percentage gain tops the pace in all other metro areas in the Sunshine State (see table below for comparisons) and surpasses the national average of 26 percent by a wide margin as well.
Florida Home Equity Growth
(Based on Prices of 2017 Second Quarter Closed Sales)
|
Rank |
Metropolitan Statistical Area |
Equity Growth (in %) |
Average Gain (in $) |
|
1 |
Miami-Fort Lauderdale-West Palm Beach |
45.3 |
77,900 |
|
2 |
Deltona-Daytona Beach-Ormond Beach |
42.4 |
52,100 |
|
3 |
Cape Coral-Fort Myers |
37.5 |
60,000 |
|
4 |
Crestview-Fort Walton Beach-Destin |
36.0 |
72,650 |
|
5 |
North Port-Sarasota-Bradenton |
34.2 |
61,150 |
|
6 |
Port St. Lucie |
31.7 |
47,400 |
|
7 |
Orlando-Kissimmee-Sanford |
30.6 |
49,000 |
|
8 |
Tampa-St. Petersburg-Clearwater |
30.4 |
42,000 |
|
9 |
Ocala |
28.8 |
28,600 |
|
10 |
Naples-Immokalee-Marco Island |
26.2 |
67,500 |
|
11 |
Pensacola-Ferry Pass-Brent |
25.4 |
33,850 |
What’s also comforting to note is that the ranks of equity-rich homeowners in South Florida has grown while those underwater have significantly declined. The recent ATOMM report also indicated that equity-rich homeowners (meaning those folks who already have at least 50 percent equity in their homes) rose 27 percent in this year’s second quarter from 25 percent a year ago.
Less Homeowners Underwater
Meanwhile, South Florida homeowners with a mortgage and still owe at least one-fourth of the value of their homes have declined to 13 percent from 17.3 percent during the same comparative period. ATOMM noted that seriously underwater mortgages have declined substantially since the 2013 second quarter when 41.7 percent severe negative equity among homeowners was recorded.
These positive developments which created wealth for many South Florida homeowners follow increases in home values during the past five years. As per the National Association of Realtors, the median price of single family homes in the tri-county of Palm Beach, Broward and Miami-Dade increased 8.1 percent during this year’s second quarter compared with the same period in 2016.
Median Prices Track the $300s
Breaking it down, the median price for resale single family homes in Palm Beach rose year-over-year by 8 percent to $345,000 in June, according to the Realtors Association of the Palm Beaches. Broward’s median price increased 9 percent to $355,000, while in Miami-Dade, the median price saw a 6 percent gain to $335,000, according to the counties’ respective trade groups.
Sales volume last June, however, was a mixed bag in the tri-county area, quite possibly a poser when considering a quick sale of your residence. In Palm Beach June sales rose 2 percent, while a 4 percent advance was observed for Miami-Dade. Broward’s sales, however, slipped 6 percent, the third consecutive monthly drop.
Definitely, these recent industry readings are just broad snapshots of factors influential to the various steps in the home selling process. Call us at 866-886-5345 or fill out this form and send it to us to learn more about the deal we can promptly offer for your home and the equity you may already have built into it.
About Arturo Cuevas:
Arturo Cuevas covers real estate news in Florida as a Contributing Writer at Sarasota Bay Real Estate and The Motley Fool.