About 42 percent of South Florida homes with mortgages were underwater during the third quarter of the year, nearly double the national average and a “millstone around the neck” of real estate that could keep the market down indefinitely.
Analysts at the Seattle-based Zillow released housing data today that showed a 17th consecutive quarter of home value declines nationwide, including in Broward, Miami-Dade and Palm Beach counties, where values fell 15 percent compared with 2009.
In the same tri-county area, 46 percent of homes that sold in September did so at a loss, according to Zillow’s report. Statewide, 48 percent of homes sold for a loss.
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Bill Hardin, a professor and director of real estate programs at Florida International University in Miami, said he wasn’t surprised by Zillow’s bleak report.
A foreclosure backlog of 396,500 cases in Florida courts, combined with the recent moratoriums on foreclosure proceedings by banks as they review and resubmit flawed paperwork will only confuse things more, Hardin predicted.
Read: “South Florida’s economic albatross: Home values and losses not getting any better,“ an article from the Palm Beach Post.