South Florida’s underwater mortgage rate nudges down in first quarter: report

Region is still recovering from low property values during '08 crash

TRD MIAMI /
May.May 05, 2016 06:00 PM

As South Florida’s home prices continue to rise, fewer property owners’ mortgages are falling under water.

A new report from real estate research firm RealtyTrac shows South Florida’s seriously underwater mortgage rate fell below 19 percent during the first quarter of 2016.

Underwater mortgages are when a homeowners has a loan balance higher than the value of the property. RealtyTrac only looks at homes where the mortgage balance is 125 percent higher than the value of the property that secures it.

The report shows that of all South Florida’s home loans, 18.5 percent were seriously underwater during the first quarter. That’s a slight dip from the 19.6 percent rate from the fourth quarter, and it marks a 4.2 percentage point drop from the first quarter 2015 rate.

During the housing crash, foreclosures and underwater mortgages became commonplace in South Florida’s real estate market. Plummeting property values caused many homeowners to fall under water with their loans, with the rate peaking at 29 percent during the second quarter of 2012.

Then, in 2013 and 2014, home values rocketed upward at double-digit rates as the market bounced back. Today, home prices are still growing at a steady clip, although recent reports show that growth might have already started to curb.

Nationwide, the underwater mortgage rate was 12 percent during the first quarter, down from 13.2 percent the year prior. — Sean Stewart-Muniz


Related Articles

arrow_forward_ios
Rendering of Belmont Village Coral Gables and Baptist Health South Florida CEO Brian L. Keeley

Baptist, Belmont gain approval for luxury senior living in Coral Gables

Baptist, Belmont gain approval for luxury senior living in Coral Gables
9885 Palomino Drive (Credit: Google Maps)

Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project

Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project
5010 Nob Hill Road (Credit: Google Maps)

Sunrise affordable senior housing facility sells for $30M

Sunrise affordable senior housing facility sells for $30M
Mark Zilbert

Let’s make a deal? Some resi sellers in Miami-Dade slash asking prices

Let’s make a deal? Some resi sellers in Miami-Dade slash asking prices
(Credit: iStock)

Home sales dropped big time in South Florida in April

Home sales dropped big time in South Florida in April
 Rendering of Father Marquess-Barry Apartments with Matt Rieger

HTG scores financing for senior affordable housing in Overtown

HTG scores financing for senior affordable housing in Overtown
Renderings of different versions of the project with Matt Rieger

HTG plans 1,000-unit affordable housing complex in Miami’s Overtown

HTG plans 1,000-unit affordable housing complex in Miami’s Overtown
Pharrell Williams (Credit: Ethan Miller/Getty Images)

South Florida by the numbers: Bright spots in a challenging market

South Florida by the numbers: Bright spots in a challenging market
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...