Florida Real Estate Market Still Miserable?

by Isaac Benmergui, Esq on March 15, 2012

All signs have been pointing to a real estate market recovery in South Florida, so why did Trulia list Florida as number 2 on its Housing Misery Index, second only to Nevada? Running the numbers may provide the answer.

How to Calculate Florida’s Housing Misery Index

To determine a state’s rank on the Misery Index, Trulia takes the percentage decline in price, starting at the peak of the housing boom until present day and combines it with the percent of past due mortgages (older than 90 days) and those in foreclosure. According to many real estate markets watchers, Florida’s home prices have not yet hit bottom and homes are still entering foreclosures, adding to 368,000 already on the books.

Jed Kolko, chief economist at Trulia cites Florida’s overbuilding during the boom and its long foreclosure process that can turn into years before the property is back on the market, as to reasons why the state’s real estate market is in the shape it’s in.

Combine the calculated figure with housing costs rising while salaries declined and you have housing misery. Fortunately, with many new condominium developments planned, and cranes starting to dot Miami’s landscape once again, these numbers should turn around as spring and summer commence.

The law offices of Isaac Benmergui can help you with your legal real estate needs; call 780-800-2510 or email Isaac@benmerguilaw.com for more information or to set up an appointment today.

 

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