Miami, Fort Lauderdale Housing Markets Expected to Collapse, Analysts Say
Three Florida communities — Miami, Fort Lauderdale and Naples — are expected to be in for a collapse of their housing markets in the coming years, based on an analysis by 24/7 Wall St.
Florida has already been hit hard by the housing market’s downward trend as well as a hit in unemployment because of the Great Recession. At 10.6 percent, only Nevada, California, Rhode Island and Puerto Rico had higher unemployment rates in June, according to the U.S. Bureau of Labor Statistics.
And with unemployment rates showing little sign of going down and housing prices continuing to take a hit, many people are being forced into foreclosure in Miami. But hiring an aggressive Miami Foreclosure Defense Attorney to fight a foreclosure is necessary in order to ensure the homeowner’s rights are upheld.
The analysis done by 24/7 Wall St. was based on unemployment rates with little help for recovery on top of already weak housing values. The top 10 list is of cities that are expected to see housing market drops by at least another 10 percent by 2012. Real estate activity, a forecast of housing prices that would drop between early 2011 and early 2012, along with June unemployment levels, median household income and other factors went into the predictions.
In the top 10 list, inventory is high and demand is low as those who are unemployed can’t afford to buy. Fear of prices dropping further also hurts these cities, the article reports and government programs have done little to help.
10. Fort Lauderdale: The analysts expect an 11.1 percent price drop as unemployment in June was 11.8 percent and the median family income was $58,800, while the median home price was $196,000. The home prices ranked 55th highest, while the income level was 194th. The low is expected to hit in the second quarter of 2013. From 2006 to 2011, home prices have dropped by 50 percent.
9. Bethesda, Md.: They expect an 11.5 percent drop, with the low coming at the same time as Fort Lauderdale. The median income is $114,100, the highest, but the median home price is $417,000, the fifth highest.
8. Salinas, Calif.: The authors expect an 11.8 percent drop, with unemployment at 12.8 percent. This suburb of San Jose has seen housing market drops of more than 61 percent and layoffs may be coming.
7. El Centro, Calif.: This is one of the poorest counties in the country, with a $43,300 media income and a 28.6 percent unemployment rate. Prices are expected to drop up to 12.1 percent by early 2012.
6. Miami: The median family income level is $47,800, 32nd lowest, yet the median home price is $175,000, good for 76th highest. The jobless rate was at 13.4 percent in June. Home prices are predicted to drop 13 percent by early 2013 and then take another 10.1 percent hit, making it the greatest depreciation of property values in the country.
5. Merced, Calif.: The June unemployment rate was a staggering 18.6 percent, with the median family income at $42,900. It is projected to hit rock bottom during the second quarter of 2012.
4. Detroit, Mich.: Housing prices are only a median $42,000, the lowest among major cities in the country. So, while the area hasn’t had a sharp decline like many California and Florida cities, it is still expected to see a drop by next year.
3. Las Vegas, Nev.: Las Vegas has been hit hard by the recession, with home prices falling 42.3 percent between 2008 and 2011. It is expected to drop 13.9 percent by 2012 and another 6.3 percent in 2013.
2. Riverside-San Bernardino, Calif.: Unemployment sits at 13.7 percent and despite a rather high $59,700 median family income, median home prices sit around $181,000. In the last five years, house prices have split in half.
1. Naples: This Southwest Florida city tops the list because of a high unemployment rate (10.5 percent), very high median home price of $225,000 and a median family income of $62,800. Prices are expected to drop 16.6 percent and hit rock bottom at the end of 2012. Home prices are expected to drop another $40,000 in that time.
If you’re battling foreclosure in Miami or the surrounding areas, contact Jacobs Legal for a confidential appointment to discuss your rights. Call (305) 358-7991.