Which Florida Home Buyers Hit It Lucky?
By Christina Sturgis
Two Florida metropolitan areas are on Zillow’s list of metropolitan areas that have bounced back from the Great Recession. Zillow analyzed real estate values from the 35 largest U.S. metropolitan areas between 2006 and 2016 to find the lowest point for each market. Then, those values at the bottoms of the value curve were compared to current values.
Miami real estate soared 60.7 percent to a current median value of $227,200, up from $141,400 in October 2011, making it No. 5 on the list after Las Vegas, San Jose, California, San Francisco and Phoenix. No. 10 on the list is Orlando, which experienced a 51.4 percent gain. Values there bottomed out in November 2011 at $119,900, and have bounced back to $181,500.
Between No. 5 Miami and No. 10 Orlando are Sacramento, Calif.; Riverside, Calif.; Detroit and Denver.
The Tampa metropolitan median home value rebounded nicely as well, bottoming out at $109,000 in December 2011 and rising to a current $163,000. That’s an increase of 49.5 percent. Zillow states that Tampa continues to be a buyer’s market, with values rising more than 9 percent in the previous year and projected to grow 2.4 percent in the coming year.
Florida had room to grow because it was also one of the states hit hardest by the recession. The Sunshine State was plagued by unemployment, foreclosures, and negative equity, mortgages with a balance to be paid that exceeds the value of the home.
The nation’s negative equity and its destabilizing effects are currently concentrated in the southwest and Midwest, according to Zillow, though Florida is not yet free of underwater mortgages. Nationwide, more than 820,000 homeowners owe the bank more than twice the current value of their home.
Four of the biggest rebounders on Zillow’s list are California metropolitan areas, including San Francisco, one of the highest-value real estate markets in the country with a much higher cost of living than Florida.
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