South Florida Real Estate Data For The 3rd Quarter of 2011 Reveal Property Prices Still Remain Low

8 November 2011

One of the biggest problems in South Florida involves the issues faced by home property owners who owe more money than their homes are actually worth on the market. But many believe that the problem is not as bad within the region as it is in other parts of the world such as Las Vegas, Reno, and Phoenix.

According to figures that have been collected over the third quarter of 2011, at least 47 percent of single-family home properties with a mortgage remain to be underwater which indicates an increase of 42 percent from 2010 and exceeds the national average by approximately 29 percent.

Real estate experts have observed as the changes take place on the South Florida real estate market wherein many buyers made their move during the height of the housing boom wherein properties were being sold for property prices which are much higher than the property prices that we see on the market today.

As a result, home property owners who purchased their homes during that time have ended up dealing with mortgage dues which the rest of the property prices dropped. Now, home property owners that find themselves underwater have very few options left as their homes become more likely to end up in absolute foreclosure.

The only event that could changes these home properties from being underwater is when a lender finally repossesses the home property and decides to sell it off on the South Florida real estate market to a third party who then has a fresh start with the new mortgage. However, the process does not change the fact that the South Florida real estate market still faces an issue as far as the sluggish pace of foreclosures which are accompanied by the decline in home values within counties such as Palm Beach, Broward, and Miami-Dade.

In fact, the home value index obtained from the third quarter had shown that values had gone down 3.5 percent to $138,000 which covers all homes within the region. Also, the values have dropped 29 percent since the peak in 2006.

One interesting feature that has been retrieved from the third quarter data is the fact that 34 percent of all South Florida real estate properties that were sold in the month of September were sold for bargain prices which indicates that there has been and there continues to be a grand range of opportunities for the thousands people who have always wanted to purchase real estate in the South Florida region.

Joan Vonnegut
Florida Real Estate