Posts Tagged ‘home prices’
Home prices continue to tumble in Florida
Florida recorded second highest foreclosure rate in November 2009, increased unemployment or decreased earning capacity forced the home owner to default mortgage monthly payments forcing the home owners to face foreclosures. As high number of homes coming for sale, increased supply than demand forced the home prices to decline.
The increased supply of home for sale is because home owners are left with no option to save their home as there is no equity left in home with the price declines and therefore forced to foreclosure. With decrease in home prices in Florida, homes available for sale is soaring for quarter ending in September 2009. This is fifth straight quarter that has recorded higher sales.
With high number of defaults in mortgage payments due to housing recession prompted the credit crisis making harder for borrowers to qualify for home loans. At the same time the tumbling prices across the nation had made the home owners to neither refinance nor to sell had given rise to record level foreclosure rates.
The median home prices declining to $145,400 for the quarter, which was $40,200 below compared to price existing a year ago. With declining prices many people are showing interest in buying homes ever before therefore sales jumped 33 percent with total homes sold were 44,345 this quarter.
Condos, whose median price recording this quarter is $106,100 with drop of $54,000 compared to year before which caused the sales to soar with 14,797 condos sold in quarter ending September 2009, a 56 percent leap from previous year.
As the unemployment rate continue to rise in Florida, which is 11 percent this fall, housing industry analysts says that median prices continue to come down as the more amount of home are forced to foreclosure.
The reduced consumer confidence which resulted from rise in unemployment creates problem for every sector of the economy. Economist says that recession seems to over but with rising unemployment rate, people are afraid to spend money which affected the housing industry and the contributing factors include reduced home prices and increase in home coming for sale for 13 straight consecutive months.
With decrease in home price, home owners are left with no equity in homes and have no option to refinance their home for newer terms and conditions leaving them helpless and having no reason to struggle for making mortgage payments and let their homes drift into foreclosure.
Florida is one among the top states in which home prices continue to tumble even in 2010, reported by fortune magazine. The reason for this home price tumble will be increased foreclosure rate.
Miami is one that topping the list with nearly 33 percent drop in home prices is predicted with west palm beach takes the 5th place, 23.8 percent drop in prices. And further more the decline in home price will not stop there as the downward pressure on continue to 2011, until the reversion in interest rate in 2011 even though the unemployment rate is expected to decrease in 2010.