The Beracha Housing Affordability Index measures the “Health” of the residential housing market in Miami-Dade and Broward counties. The index is produced quarterly by Dr. Eli Beracha, associate professor and director of FIU Business’ Hollo School of Real Estate, and sponsored by Avantiway Real Estate.
The index considers current housing inventory, average housing days on the market before sale, percent of selling price relative to asking price, and change in the level of housing inventory. Also factored in are the momentum in housing price appreciation and the number of properties sold, or pending sale, relative to current inventory. The index considers Miami-Dade or Broward separately and for each county evaluates single homes or condominiums for three price ranges ($100K-$350K, $350K-$600K and $600K-$1.5M).
Index values above 0 and approaching 1 suggest that the market is “Healthy” and that above normal price appreciation is likely over the coming 12 months. On the other hand, index values below 0 and approaching -1 suggest that the market is “Unhealthy” and that below normal price appreciation (or even price depreciation) is likely over the coming 12 months.