Rentals, used car prices down
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Consumer confidence among Floridians is finally up again, although slightly, after a two-month decline amidst the tough economic conditions created by the coronavirus pandemic. Meanwhile, if you’re in the market for a car, used car prices are way down, while there’s one thing that hasn’t changed too much: high rent prices in South Florida.
After two months of unprecedented declines, consumer confidence among Floridians inched up one-tenth of a point in May to 76.4 from April’s revised figure of 76.3, according to the University of Florida’s Consumer Sentiment Index. Confidence is similarly up slightly at the national level.
Among the five components that make up the index, two increased and three decreased. Opinions about current economic conditions were mixed. On one hand, perceptions of one’s personal financial situation now compared with a year ago decreased 3.1 points. Men and those with annual income above $50,000 expressed less favorable views while women and those with income under $50,000 reported favorable views. On the other hand, after reaching its lowest level on record, opinions as to whether now is a good time to buy a major household item like an appliance surged 9.3 points.
Opinions about expected economic conditions were also mixed. Expectations of personal finances a year from now increased slightly by three-tenths of a point, while anticipations of U.S. economic conditions over the next year decreased seven-tenths of a point and expectations of U.S. economic conditions over the next five years declined 5.2 points.
“Views about national economic conditions in May were overall less favorable, particularly regarding long-term economic conditions. These pessimistic views were notably stronger among Floridians with income under $50,000, whose job prospects have been severely affected by the pandemic,” said Hector Sandoval, director of the Economic Analysis Program at UF’s Bureau of Economic and Business Research.
On the car-buying front, retail used car sales dropped more than 20% year-to-year in March, according to U.S. Census Bureau data. The last time that happened was at the start of the Great Recession of 2008. The automotive research firm Manheim reports that as a result, used car prices on the wholesale level dropped more than 11% in April. Retail price drops though are lagging due to inventory, down just 3.6% January through May. The states with the biggest retail price reductions include Utah, Delaware and Florida, all down more than 4.5%.
One sector not to expect big price breaks in is residential rental, especially in Miami. While May rental prices in South Florida dropped 2.2% from May of 2019, the region still ranks among the most expensive in the country. The Miami area ranked #10 out of 100 U.S. metropolitan areas in the June 2020 Zumper National Rent report. The median May rent for a one-bedroom, one-bathroom unit was $1,750 per month in the metro area of Miami-Dade, Broward and Palm Beach counties.
LMA Newsletter of 6-8-20
