Oil Spill Will Depress Florida's Market Further
June 30th, 2010
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Oil Spill Hurts Fla. Market, Fitch Says
Fitch Ratings says the Gulf of Mexico oil spill will depress Florida real estate, a market already hit hard by falling home values and steep unemployment.
Fitch managing director Roelof Slump says the Sunshine State has the highest mortgage delinquency rate across all property types, with 50 percent of loans—not counting those backed by Fannie Mae and Freddie Mac—at least 60 days past due and over 80 percent underwater at the end of May.
The study also shows that the amount owed by 40 percent of home owners tops 150 percent of the property value.
"Directionally, it seems pretty clear given that all the pressures these home owners are under, both the frequency and severity [of defaults] are likely to worsen," speculates Slump, adding that residential values have fallen statewide.
Source: Miami Herald, Jane Wooldridge(06/29/10)
© Copyright 2010 Information Inc.
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