Canada's Housing Bubble

Aug 10, 2010 cbs4.com

South Florida home values continue to fall according to the latest numbers out of the national real estate service Zillow.com. The area is one of the Top 20 worst area of the country for having homeowners owing more than their property's worth.

It's the latest sign our housing recovery remains severely challenged, despite predictions to the contrary. Zillow reported selling prices around the Greater Miami-Ft. Lauderdale market are still bottoming out.

According to Zillow, the average home price in Miami-Dade County is $144,700. That's down nearly 21 percent from 2009. In Broward County, the average home value is $134,800, or down 13.9 percent from 2009.

Comparing the home prices in 2010 to the same time at the peak of the housing bubble in 2006 showed that in Miami-Dade County, prices dropped 55 percent. In Broward County, the numbers are almost exactly the same with prices dropping 54 percent.

When it comes to the number of homes in negative equity, or underwater, 44 percent of South Florida single-family homes are underwater. That number is unchanged from the first quarter of the year.

But for those hoping to sell their house and still make some money off of it, good luck. Forty-four percent of all homes in June were sold for a loss in South Florida.

In Miami-Dade County, 47 percent of homes were sold for a loss and in Broward, 46 percent of homes were sold at a loss to the homeowner.

But, South Florida isn't the worst area for home sales in the Sunshine State. Zillow found that Tampa and Orlando are in even worse shape than South Florida.

If you already have a home equity loan, don't be surprised if your lender starts cutting it back. If you don't have one, you may have a hard time finding a bank willing to write a new one.