According to a report from Zillow, in the third quarter of 2011, those selling their homes in Palm Beach County lost money on almost 46 percent of occasions. This was an increase of 3.4 from the second quarter. As well, in September, national figures were 34 percent of homes selling for a less which is three percent more than for the same time frame last year.
And it looks like there is more bad news along the way. According to one economist at Zillow, home prices are meant to plummet a further three to five percent before hitting rock bottom nationwide. The economy isn’t doing great with unemployment, negative equity and more. With such features plaguing the economy, is going to be a long time until the housing market stabilizes.
Close to 50 percent of homeowners in Broward, Miami-Dade and Palm Beach owed more on their mortgages than the worth of their homes during the third quarter. This figure has slightly increased since the second quarter. It also looks like next year, the values on South Florida homes will be hitting bottom. At that point, banks will have to start unloading all these homes. The one silver lining on the cloud according to the Zillow report is that there has been a reduction in pace of home-values.