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.

Nearly Half of South Florida Homes Underwater

Nearly half of all homes in South Florida were in negative equity, or underwater, after the first quarter of this year.

In Miami, 46.6% of homes were underwater, while the figure was 49.4% in Ft. Lauderdale.

Having negative equity, or being underwater, means that borrower owes more on their mortgage than their home is worth.

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 Home Values Drop From 2009

South Florida home values dropped further than 25 other metropolitan areas in Q2 of this year, falling 15% since 2009

Median home values in Miami-Dade, Broward and Palm Beach County are now priced at $146,500, down 7% from the beginning of 2010 and 52% from 2006's peak values.

With real estate values still on the decline, it comes as no surprise that 44% of South Florida homeowners' mortgages are "underwater," meaning they owe more on their loan than the house is currently worth.