Don't get too overly excited. The index is a reflection of the Miami-Fort Lauderdale Metro area. While it signifies a positive trend it doesn't mean Homestead has experienced a significant rate of growth considering various factors affecting home valuations in the local area.
First our home prices hit rock bottom and then started digging, so a small increase in valuation reflects a higher percentage. However, In real dollars its meaningless since most probably the house is still under water, one is still drowning in debt, just not as much.
Second, our location, being 30+ miles from major work centers in the county, places us at a disadvantage due to high transportation costs. Public transport is inefficient and the Turnpike is expensive on its own never mind fuel. While Homestead has some jobs they tend to be lower wage service sector jobs. This leaves a significant many to head north every morning to work and south in the afternoon. Not efficient by any means so costs rise and our city's value proposition diminishes.
So lets be optimistic while keeping our expectations realistic to avoid financial exuberance that's unsustainable in the long run for our families and community.
Zillow Market Guide ExampleZillow predicts Homestead home values will increase 2.2% next year, compared to a 4.2% rise for Miami-Fort Lauderdale Metro as a whole. Among Homestead homes, homes in Keys Gate are approximately valued 70% more than the midpoint (median) home, and are valued about 19% more per square foot.
Reference LinkCase-Shiller: Property values up 11 percent in South Florida - Business - MiamiHerald.com
0 comments:
Post a Comment