What’s the deal with asking prices in our metro area?

Creative Commons: Ingmanjc, http://commons.wikimedia.org/wiki/File:Captain_Calvin_and_Pamela_Case_House_Bay_window.JPG

Asking prices in the Miami area remained positive in November, though they seem to be showing signs of slowing down, according to the newly released Price Monitor from Trulia.

Per Trulia’s analysis, Miami asking prices surged 11.4 percent year-over-year in November, which is 3 percentage points above the national average; at the same time, though, quarterly increases were up just 3.1 percent, which is behind most other large metro areas and the national average of 3.4 percent; asking rents, however, remained above the national average, at 7.3 percent year-over-year.

Is Slower Price Growth a Bad Thing?

On one hand, slower price growth – particularly growth lagging national averages – would appear to be a bad thing; on the other hand, though, in a housing market that is utterly in the throes of an affordability crisis, below-average increases do not seem all that bad, especially considering the economic challenges that continue to plague Millennials, aka the next great source of housing demand. In the end, foreign demand cannot sustain Miami’s market forever, so it’ll be important that it appeal to a wide variety of consumers and income levels.

Of course, this is only one month of data, so it’s dishonest of us to suggest any kind of trend just yet; however, should Miami’s price increases remain in check, it will no doubt boost the market’s credence with younger buyers of a more moderate income.

Interested in how Miami compares with other metro areas? Check out our graph below for additional perspective: