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Florida Foreclosure Listings Still Growing, Prices Falling

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By : John Cutts    99 or more times read
Florida foreclosure listings are still growing and home prices are still falling as the unemployment rate in the state continues to rise, based on data from three real estate research firms.

In the third quarter, Florida was one of six states which comprised 62 percent of all foreclosure actions posted nationwide. Second only to California, Florida had almost 157,000 of its residential properties put into the foreclosure process. With a foreclosure rate of one in 56, it was fourth among all the states in a ranking of rates.

The pace of foreclosure activity in the third quarter this year stepped up by more than 23 percent from the July to September quarter of 2008, although it slowed slightly by 0.71 percent compared to the April to June quarter.

Because of the continued entry of foreclosures into the Florida market, home prices continued to fall, with Miami suffering the steepest price declines.

Based on data from the Standard & Poor's/Case-Shiller home price index, financial services provider Fiserv predicted that house prices in Miami will fall further by almost 30 percent between June this year to June next year. It said that the median house price of $215,000 this year will drop to $150,715 next year, below the predicted national average.

With real estate owned homes in Florida foreclosure listings reaching nearly 21,800 units in the third quarter, prices statewide are expected to fall further.

Fiserv contended that the rise in foreclosures and the sharp drops in home values could trigger further foreclosure actions as more homeowners deliberately move out of their homes.

Fort Lauderdale was also predicted by Fiserv to suffer steep price declines, with the median house price dropping by more than 26 percent from $218,000 to $160,884.

West Palm Beach meanwhile was predicted to suffer nearly 22 percent in home price drop, falling from its median home sales price of $229,000 to $179,307.

Fiserv also said that house price levels in South Florida will continue to fall in 2010 and 2011, although no longer in double digits.

In September, the adjusted unemployment rate in Florida increased to 11 percent, compared to its adjusted rate of 10.8 percent in August. The rate is higher by 1.2 points than the national jobless rate of 9.8 percent.

Florida lost a total of 360,400 non-agricultural jobs in September. The sectors suffering the highest level of job losses were the trade, transportation, utilities, professional services and construction sectors.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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