Seasonal Uptick in South Florida Home Prices

South Florida home prices inched up this May, but analysts say the increase may just be seasonal.

Since April, home prices in Miami-Dade, Broward and Palm Beach Counties rose 1.2%. However, analysts say there is more demand in the early summer months, resulting in seasonal higher home prices.

Florida Realtors reported an increase of 26% over last year for median home prices in Broward County, yet a 12% drop for median home prices in Palm Beach County.

South Florida home sales have been strong this year, but they still have a long way to go.

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.

51% of Broward County Mortgages "Underwater"

More that half (51%) of homes with a mortgage in Broward County were "underwater" in the fourth quarter. Palm Beach county mortgages showed similar trends, with 44% of homeowners owing more on their mortgage than their property is worth.

Many homeowners refinanced or purchased during the economic boom that preceded the current recession and are now facing the issues that go along with negative equity.

South Florida Foreclosure Filings Down 49%

May 2010 showed a 49% decrease in the amount of foreclosure filings in South Florida compared to May 2009.

In May 2009, 8,350 foreclosures were initiated in the tri-county area. But last month, only 4,250 tri-county homes filed for foreclosure.

Foreclosure filings are down 50% in Miami-Dade County, 55% in Broward County, and 36% in Palm Beach County.

This decline in foreclosure filings is attributed to South Florida lenders' efforts to modify mortgages and accept short sales.

Associated Press Economic Stress Index

The Associated Press (AP) has compiled foreclosure, unemployment, and bankruptcy data in order to create a county-by-county index of the impact of the current economic situation across the nation.

The Economic Stress Index map shows a trend of highly populated, urban areas experiencing the worst of the recession and rural, inland areas experiencing a less harsh recession. The indices range from 0 to 100, with 100 being the areas most affected by the recession.

Broward and Miami-Dade Counties both have an Economic Stress Index of over 15 and Palm Beach County follows with an index of almost 14. This is due to high levels of unemployment, foreclosures and bankrupcy across South Florida.