Trulia periodically releases average home price and rent figures for the 100 largest metro areas in the United States. Once again, rising Florida home prices are beating out the national average in most areas. Jacksonville and Palm Bay are the only metro areas on the list that have not experienced greater than the 12.1% average increase in asking price.
The top performing areas were Fort Lauderdale and Orlando, separated only by a tenth of a percent. Important to note though, is the fact that some areas in Florida have experience exponential increases in average rents charged. For instance, the average rent charged in Lakeland has shot up 24% in one year. So, a $1,000 rental last year would now cost you $1,240… eesh.
From the analysis and interpretation of this data, a few points seem evident.
First, the State of Florida in general is experiencing a higher percentage of price increases. This is most likely due to the fact that Florida was also the state that experience some of the largest declines in value over the past handful of years. That, in addition to the overall appeal Florida has for those looking for great weather and a new lease on life.
Secondly, it appears that the growth seems to be slowing. By dividing the year-over-year figures by 4 we get the average quarterly increase for the areas. Comparing that to the quarter-over-quarter figures would give you an indication where that market is currently trending. But without doing any math, you could easily see that Lakeland experienced a 13.9% increase year-over-year but had a .3% reduction this most recent quarter. This signifies that the growth has been great but has begun to slow, most likely due to the time of year as well as a myriad of economic factors.
Lastly, it seems that rents charged are getting out of control. While completely unfortunate for anyone looking to rent a home these days, this would be a great opportunity to purchase an investment property and rent it out to earn a residual income. Mortgage rates are low, prices are stabilizing and rents are increasing – perfect conditions for an investor looking to capitalize.