Florida property prices see fourth biggest increase as us recovery continues

Florida property prices saw the fourth biggest increase in America as the US housing market recovery continues.

Overall home values jumped by 1.2 per cent last month compared to 2011, according to Zillow's latest report, with Phoenix at the top of the Pack, with values soaring by 13.4 per cent. Detroit and Denver were close behind, just ahead of Florida's Miami metro.

And the increases spread further than that: 62 percent of the metros covered in the reports saw home values climb during July, with only 49 of the 167 metro areas experiencing declines.

U.S. rents also continued to rise, climbing 0.2 percent month-over-month and 5.4 percent year-over-year. Nationally, rents have increased in 6 out of the past 12 months, with most metros (70 percent) experiencing rent increases from June to July. 

Rents have experienced double-digit, annual increases in several large metro areas where home values continue to decline, including Chicago (12.6 percent), Providence, R.I. (12.1 percent) and Baltimore (11.9 percent).  This is likely due to both continued high foreclosure levels in these markets, which increases rental demand, as well as consumer reluctance to buy when home values continue to fall.

"This summer, the housing market continued to heal, as home values experienced their eighth consecutive month of increases," said Zillow Chief Economist Dr. Stan Humphries. "Tight inventory levels are leading to bidding wars and multiple offers across the country. Looking ahead, we expect to see less aggressive increases in the fall as rising values lift some would-be sellers out of negative equity, allowing them to place their homes on the market."

Foreclosures continued to decline in July, with 5.7 out of every 10,000 homes in the country being foreclosed. That was down from 6.5 out of every 10,000 homes in June.