Real Estate News

Report: Nearly 1 in 4 Miami-Dade homes still underwater on mortgages

“Underwater” home mortgages were a major problem in South Florida during the recession. The region still has a high rate of homeowners in negative equity.
“Underwater” home mortgages were a major problem in South Florida during the recession. The region still has a high rate of homeowners in negative equity. Getty Images/iStockphoto

Nearly one in four Miami-Dade homes are underwater — not in the literal sense, although that may happen too if sea levels keep rising.

About 23 percent of Miami-Dade homeowners with a mortgage owe more than their property is worth, according to a report released Tuesday by property analytics firm Corelogic that covers the second quarter of 2015. That’s down from about 29 percent in the second quarter of 2014.

In Broward, about 19 percent of homeowners owed more to lenders than the value of their home in the second quarter of 2015, down from 24 percent in the second quarter of 2014.

Homes in negative equity are often described as being “underwater.”

A home is considered ‘underwater’ when its owner owes more on the mortgage than the property is worth

South Florida was hit especially hard when the housing market collapsed during the recession and home prices tanked. Around 50 percent of local homes went underwater in 2010, making it nearly impossible for owners to sell.

Florida had the second highest rate of underwater homes in the country at 18 percent during the second quarter of 2015. Only Nevada at 21 percent had a higher rate of negative equity. The national rate was 9 percent.

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