Bargain hunters in South Florida’s real estate market tend to look at foreclosed properties first, and some federal data show why that’s probably not a bad idea.
This chart tracks property values in Miami-Dade from the Federal Housing Finance Agency. One line tracks an index of values for all single-family homes, while the other looks at the same index but excludes houses that aren’t considered “distressed” -- that is, the index only accounts for houses that weren’t sold for a bank or sold “short,” meaning for less than a mortgage on the property.
Both lines show a similar trend: a run-up in values through 2007, then a crash. But the gap is unmistakable, with non-distressed properties on a better road to recovery than the market overall. In the last year, property values overall in Miami-Dade have recovered 7 percent of their value.
Take out the distressed properties, and that gain soars to 16 percent.
The Miami Herald’s Economic Time Machine seeks to give the long view on the latest financial numbers for South Florida. Visit miamiherald.com/economic-time-machine for analysis of the numbers that drive the local economy. Our ETM index tracks more than 40 local indicators to measure where the economy has “landed” post-bust when compared to earlier economic conditions. The latest reading: July 2003.