Summary of the Housing Price Trends System

  1. Decide on what areas of the country or states in which you wish to invest in residential real estate.
  2. Subscribe to the Housing Price Trends quarterly update service. You also can sign up for the free data service to get familiar with the charts before signing up for the paid service with quarterly updates.
  3. Focus on the subset of the top 148 cities that fall within the geographic area of interest.
  4. For example, you choose to invest in the state of Florida. The cities in Florida that are in the top 148 list are:
  • Cape Coral-Fort Myers, FL
  • Crestview-Fort Walton Beach-Destin, FL
  • Deltona-Daytona Beach-Ormond Beach, FL
  • Jacksonville, FL
  • Lakeland-Winter Haven, FL
  • North Port-Sarasota-Bradenton, FL
  • Orlando-Kissimmee-Sanford, FL
  • Palm Bay-Melbourne-Titusville, FL
  • Pensacola-Ferry Pass-Brent, FL
  • Port St. Lucie, FL
  • Punta Gorda, FL
  • Sebastian-Vero Beach, FL
  • Tampa-St. Petersburg-Clearwater, FL
  • Gainesville, FL
  • Homosassa Springs, FL
  • Naples-Marco Island, FL
  • Ocala, FL
  • Panama City, FL
  • Sebring-Avon Park, FL
  • The Villages, FL
  • Miami-Miami Beach-Kendall, FL (MSAD)
  • West Palm Beach-Boca Raton-Boynton Beach, FL (MSAD)
  • Fort Lauderdale-Pompano Beach-Sunrise, FL (MSAD)

There are 23 cities in Florida that are in the top 148 cities; a large percentage offering a lot of options. A resource that may be useful to narrow down areas within a city that may be of interest is the HPT Proficient Performance Report: Trends by Zip Code.

Using the Housing Price Trends system, you would have received a BUY signal for the city of Cape Coral-Fort Myers, FL in 4Q2020 and a SELL signal in 3Q2023. You would have realized a 53.9% annual return, adjusted for inflation. And, according to government data, during this period of 2.5 years, the dollar lost 16% of its value. These data are based on a purchase with 20% down payment.

Here is the chart and accompanying BUY-SELL table for this city example:

The average Inflation Adjusted % change in HPI during this period was 13.5%.

 

  1. A wise approach is always to diversify and purchase in various geographic areas. With your profits you can then make additional purchases and benefit from the power of compounding.