Foreclosures and Undesirable Equity Still Loom Over Florida
Despite South Florida’s booming housing market, the area is still plagued with foreclosures and negative equity.
During the first quarter of 2013, South Florida posted impressive gains home values and sales volume. However, new data reveals that the region still has a long way before it can successfully come out of the past housing burst.
According to Corelogic, 40.7 percent of mortgaged homes in Miami and 39.3 percent in Fort Lauderdale are still struggling with their payments during the first quarter. The numbers are striking since they are nearly double the national average of 19.8 percent.
RealtyTrac also produced reports that the foreclosure activity in the Miami-Dade County increased to 78.4 percent in May. The county has one of every 143 residences in some stage of foreclosure. This is more than six times the national average of one of every 885 residences.
The activity with regards to the foreclosure is geared towards lenders paying more attention to cases that had been in the backlogs for quite some time.
The data from Corelogic lends some reason to the region’s inventory. As it is, homeowners are still weary of putting up their homes for sale if it means coughing up some cash to make up for the negative equity.
Yet even with these reports, South Florida is still experiencing a decrease in the number of homes underwater.