Miami's market update Quick Facts. Last quarter 2011

This is the latest market update, lets take a look at this quick facts that may affect your selling or buying decision

• The local housing price correction eliminated all of the equity gained during the housing boom.
• Miami's Employment growth has eased, but remains positive.
• Miami's unemployment rate lags the national average, but has improved relative to the same period last year.
• Construction is on the rise relative to last year, suggesting that the local inventory has stabilized.
• There are nearly 9.4 prime loans for every subprime mortgage in the Miami market, which is less than the national average of 14.4 suggesting that subprimes make up a greater share of the local market than on average.
• Miami's 90-day delinquency rate climbed faster than the national average over the most recent 6-month period.
• The increase in the subprime foreclosure rate over the most recent 6-month period is likely to continue as evidenced by the increase in 90-day delinquency rate.
• The decline in the prime foreclosure rate over the 6-month period ending in December is likely to change coarse and rise in the near future as evidenced by the increase in the 90-day delinquency rate.
• Monthly Mortgage Payment to Income is historically strong and an improvement over the third quarter of 2011.
• The average 30-year fixed rate mortgage slipped below 4.0% for the first time in history during the first week of October according to Freddie Mac’s Primary Mortgage Market Survey. The average weekly rate stayed under 4.0% for all of December reaching a then record of 3.91% in the week of the 22nd. Rates are likely to remain low as core inflation is in check and the recent increase in fuel prices are unlinked to mortgage rates unless they reflect growing demand for oil due to a rapid economic expansion, which is not in the forecast. Rates are likely to rise through the spring, but remain well below 5%.
• Modifications have fallen in Florida since last year, breaking with the national trend.

This report covers the Miami Area Miami-Fort Lauderdale-Miami Beach metro area as officially defined by the Office of Management and Budget of the U.S. Government Courtesy of Realtors.org