South Florida housing market shows improvement, Freddie Mac says
The South Florida housing market continues to rate favorably on a national housing scale issued by mortgage company Freddie Mac.
The metro area consisting of Palm Beach, Broward and Miami-Dade counties scored an 86.5 in October on the Multi-Indicator Market Index, up 14 percent from a year ago. The national housing score was 81.9.
The index measures the health of housing markets nationwide by analyzing home loan applications, mortgage delinquencies, affordability and employment. A score of at least 80 is considered stable.
Among the top 100 metros, the tri-county region ranked 27th in October, improving 23 spots from a year earlier.
South Florida topped 80 in May for the first time since August 2008.
Fresno, Calif., scored the highest nationwide in October at 101.9. Austin, Texas, was second at 96.5.
Housing analysts don’t see any issues with employment, mortgage delinquencies and home loan applications nationwide. But wages aren’t keeping pace with home price increases, so affordability is a growing concern, particularly in South Florida.
Most of the new construction is geared to affluent buyers and out of reach for middle-income consumers, market observers say.
While single-family home prices remain largely affordable, many buyers are starting to feel the squeeze, said Jon Klein, an agent for Real Living 1st Choice in Broward. Klein said historically low mortgage rates are making all the difference.
“That’s still keeping people in the game,” he said.