The overabundance of seriously underwater homes in Florida has resulted in a logjam in the state’s real estate sector. A seriously underwater home is one that possesses a loan-to-value ratio of 125 percent and over, and the Sunshine State ranks second in the nation in the total number of these homes. Though the latest statistics show a decline in homes with negative equity, the prevalence of a significant number of properties that cannot be sold has created a decrease in the availability of affordable homes, and also a rise in prices across the real estate landscape.
Potential first-time buyers are seeing a depleted inventory of affordable homes, which is directly related to the high number of these residences that are not marketable because of negative equity. Experts have predicted that it will take years for this situation to be resolved.
Along with the lack of available low-cost homes, this phenomenon has caused prices to rise across the board. This is a perfect example of the economic theory of supply and demand. The median price of existing single-family homes experienced an 11.1 percent increase from one year earlier, recently clocking in at $199,900. Townhouse and condominium properties, also experienced an increase, though the climb was a bit less. The median price for these properties went up by 5.1 percent over this same year, rising to $150,000.
Florida continues to be plagued by these seriously underwater homes, and the ripple effects will be felt for some time across the real estate sector, directly affecting prices and availability. If you find yourself battling foreclosure, or know of someone who is struggling with an underwater property, Graham Legal would like to extend a helping hand. We invite you to schedule an appointment with a Miami foreclosure attorney and let one of our knowledgeable lawyers get to know the ins and outs of your specific situation. Allow us to help place you on the path to a more stable financial future today.