Many people bought homes when prices were high in early 2006, right before the recession hit. This meant that, when that recession hit, those homes were worth less than when bought, meaning many were under water in their mortgage and unable to simply sell a home they may not have been able to afford any longer. There has been a steady improvement in the market, and some recent good news in Florida markets may help those still struggling avoid the possibility of home foreclosure.
The latest data reports that south Florida saw a double digit gain in home prices. This gain was noted as being much better than the gains made by the rest of the country. Three counties in Florida — Miami Dade, Broward and Palm Beach — had an over 10 percent increase in housing prices. This rate compares to a 4.8 percent increase across the nation.
Despite the gains, home prices still lag far behind what they were in Dec. 2006. They are currently down 32 percent from that time period. The rise is also noted as a moderate one over time, meaning that the homes involved are considered affordable, making the area a popular market for those looking to buy.
For those who struggled with the recession or are still struggling, the fight to avoid home foreclosure can depend on individual market trends and what area the home is located. For those lucky enough to have prices rise, selling or a loan modification may help homeowners avoid home foreclosure. However, others may want to investigate other options, such as bankruptcy, in order to get the fresh start needed to regain financial independence and avoid further damage to credit ratings.
Source: realtime.blog.palmbeachpost.com, “Home prices beat national slowdown in these Florida counties“, Kim Miller, Nov. 25, 2014