South Florida 3Q 2010 Real Estate Picture, According To Zillow

As we expected, the prices of homes in the South Florida market continued to decline during 3Q 2010; this according to real estate firm Zillow.

The large number of distressed properties and the weak job market continue to cause hardship for homeowners in the market.

Zillow reports the peak for home values in the South Florida market was June 2006. Zillow estimates home values in the market have fallen 53.5% since June 2006 to 3Q 2010. Among the 25 markets followed by Zillow, the South Florida market dropped the most during this time.

Of the single family homes in the South Florida market, Zillow estimates 42% are "underwater", meaning they owe more on the mortgage than the home is worth.

Prices continue to fall in the market in order to keep up with the distressed properties in the area. Zillow reports 21% of homeowners in the South Florida market reduced the listing price on their home during 3Q 2010.

We think the trend will continue in the foreseeable future, meaning home values will not appreciate during the next year. However, we see the market bottoming out during the next 12 months.

In order to track our predictions, we include the following information: According to Zillow, the South Florida median selling price fell as follows:

--Single family home prices were down 7.8% from last year in 3Q 2010, to $221,200;

--Condominium prices were down 14.2% from last year in 3Q 2010, to $109,800.

Another intresting tid bit to track our theory: Esslinger-Wooten-Maxwell Realty estimates short sales and foreclosures (i.e., distressed property) accounted for more than 60% of home sales during 3Q 2010.

If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

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