One of the things that many homeowners in Florida have seen in the wake of the mortgage and foreclosure crisis is falling property values. Decreases in property values can have many negative impacts on homeowners. Such decreases can result in homeowners losing equity in their homes and can lead to homeowners facing problems such as being underwater on their mortgage (a person is “underwater” when the value of a property he or she owns is less than the amount he or she owes on the mortgage on said property).
Recently, the Miami Herald reported on statistics that have come to light regarding property value changes in South Florida. These statistics seem to indicate that declines in property values have eased.
Reportedly, in 2010, Miami-Dade County experienced a 2.8 percent decline in property values, while Broward County experienced a 1.6 percent decline. Also, many cities in South Florida reportedly saw less severe property value declines in 2010 than they did in 2009. In fact, some cities even reportedly saw property value increases.
Thus, it appears that property value declines could be easing in the South Florida region. What effects could this have on homeowners? As we mentioned above, property value declines can cause many problems for homeowners. Thus, an easing in such declines could have positive implications for homeowners. However, the Miami Herald indicated that this easing of property value declines could also have some drawbacks for homeowners, as it could leave some facing higher tax bills.
It will be interesting to see if this trend of easing property value declines continues and what effects this trend ultimately does have on homeowners in South Florida.
Source: The Miami Herald, “South Florida property values show only modest declines,” Toluse Olorunnipa, 1 Jul 2010