You probably already know that Florida was hit pretty hard when the housing bubble burst a few years back, but did you know that there might be more bad news on the way for Miami? Home prices are low right now, but they might be about to get even lower.
Right now, Miami actually has an unemployment rate of about 13.4%, which is one of the highest in the country. Although home values are above average, the prices in Miami are actually down by about 50% since 2006. Experts believe that the high unemployment rate has had a direct affect on the home prices, and it makes sense – how many people are actually thinking of moving when they don’t have jobs?
Unfortunately, experts are projecting those home values to drop even further – by another staggering 13% by the beginning of 2013. That’s not the whole picture, either. Prices might move even lower after that projected first drop – by another 10%! If that actually happens, it could mark the largest property depreciation in the United States in an area already heavily hit by current low prices.
While this might not be great news for anyone who might want to put their house on the market, it could work out quite well for people who want to move to Miami. Currently, the median home price is about $175,000 while the median family income is about $48,000.