Nearly one in three Miami-Dade County homes with a mortgage are “underwater,” meaning that the balance of the mortgage is greater than the price the property would fetch on the open market, according to a new report.
Homes that are underwater are difficult to sell or refinance and face a higher risk of foreclosure.
More than 27 percent of Miami-Dade homes — about 122,950 properties — were underwater in the fourth quarter of last year, a report by the property analytics firm CoreLogic found. That’s an improvement from the fourth quarter of 2013 when 33.6 percent of local homes — about 153,980 properties — were in negative equity.
Although South Florida’s housing market is in recovery, the new figures show that many homeowners here are still suffering from the aftershocks of the financial crisis.
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At the state level, 23.2 percent of homes in Florida are underwater, according to CoreLogic. Only Nevada (24.2 percent) had a greater share of homes in negative equity.
“Negative equity continued to be a serious issue for the housing market and the U.S. economy at the end of 2014 with 5.4 million homeowners still ‘underwater,’” Anand Nallathambi, president and CEO of CoreLogic, said in a statement.