Miami home prices rose 4.24% year over year in August, outpacing the 2.1% national increase as U.S. home-price growth picked up from July. The latest Case-Shiller figures also show a small monthly gain for Miami, while the national index edged lower. Inflation continued to outstrip national home-price growth in real terms.
Key takeaways
- Miami prices increased 4.24% year over year and 0.17% from July.
- The national index gained 2.1% year over year, up from 1.9% in July.
- National home prices slipped 0.02% month over month.
- Inflation-adjusted U.S. home values declined for a 15th consecutive month.
The figures point to different short-term trends across markets: Miami recorded a monthly rise, while the national measure dipped slightly. The index’s year-over-year growth nevertheless strengthened nationally.
Miami posts stronger annual growth
The Case-Shiller data put Miami’s annual home-price increase at 4.24% in August. Prices also rose 0.17% compared with July, indicating a modest monthly gain in the market.
The report did not provide additional Miami-specific detail on transactions, inventory or affordability. Its figures track price changes, rather than explaining what factors drove them.
National growth accelerates, but monthly prices ease
The S&P Cotality Case-Shiller U.S. National Home Price NSA Index rose 2.1% from a year earlier, compared with 1.9% annual growth in July. On a monthly basis, however, the national index declined 0.02% in August.
Performance varied considerably by market, according to S&P Dow Jones Indices. Chicago ranked highest for annual price growth, while Seattle was at the bottom and registered a decline. The report’s summary did not give specific growth rates for those cities.
Inflation keeps real home values under pressure
Although prices increased in nominal terms, U.S. home values fell after adjusting for inflation for the 15th month in a row. August inflation was 3.4%, exceeding the national index’s 2.1% annual gain.
Rebecca Kaufman, an associate director at S&P Dow Jones Indices, said the gap between inflation and home-price growth had narrowed as nominal growth strengthened. She also pointed to affordability pressures, including mortgage rates in the mid-to-high 6% range and Brent crude prices near $100 per barrel. High home prices and household costs, she said, continue to make affordability challenging.