More South Florida Homes Underwater

More South Florida homes were underwater in the second quarter of 2011 than last year.

According to Zillow, approximately 46% of homeowners in Miami-Dade, Broward and Palm Beach Counties owe more on their mortgage loan than their homes are worth, compared to 43% in the second quarter of 2010.

The same trend continues nationwide, with 27% of US homeowners underwater this year, compared to 22.5% last year.

Florida's Economy Better Than Last Year But Still Weak

As we move into the second half of 2011, it is time to look back at the economy in South Florida over the last six months. Data from 15 key economic indicators suggest a slight improvement in South Florida's economy since last year, but we still have a long way to go.

Unemployment is on the rise yet again, despite the fact that many companies have been hiring recently. The figures are 13.4% in Miami-Dade and 9% in Broward County. Although this is nothing compared to the 23,600 jobs South Florida was losing each month in spring 2010, it shows a slow recovery to the job market.

The real estate market has also proved slow to recover. Although single-family home sales are up 18% over last year, the prices these homes are selling for are down almost 5% over 2010.

Some good news is found in consumer spending, tourism and trade. Taxable sales have increased almost 8% since last year and Miami continues to be one of the top 3 destinations in the U.S. for Latin Americans and Europeans.

South Florida Home Sales Rise as Prices Continue to Drop

Driving down the streets of South Florida it's hard not to notice the number of homes for sale. 2011 may be the year that these homes are bought.

In the first 3 months of 2011, home sales in Palm Beach County increased 33% compared to 2010. Almost 2,600 homes were sold in the first quarter of 2011, and yet the median home price dropped 18% this year to $194,000.