South Florida Home Prices Plummet

MIAMI (CBS4) - Home prices across the nation continue to bottom out, according to the latest information from the Standard & Poor's/Case-Shiller Home Price Index.

Eleven markets, including Miami, have hit their lowest point since the housing bust started in 2006 and 2007. Across the country, only San Diego and Washington, DC showed a year-over-year increase.

In a year-over-year analysis, S&P found that home prices in Miami dropped for the year by 3.7 percent. In a month-over-month analysis, Miami's prices dropped by two-tenths of a point from October to November and another one-half percent from November to December.

"Unlike the 2006 to 2009 period when all cities saw prices move together, we see some differing stories around the country," said David Blitzer, Chairman of the Index Committee. "California is doing better…At the other end is the Sun Belt – Las Vegas, Miami, Phoenix, and Tampa. All four made new lows in December."

Standard & Poor's said that home prices overall are back to their levels in the first quarter of 2003 and are nearing the bottom that was seen in the first quarter of 2009. Miami's numbers in December was a new index level low since home prices peaked in 2006-2007.

The news is especially damaging to local and state governments who depend on property tax revenue to survive.

With Florida Governor Rick Scott wanting to cut property taxes further, and cut business taxes to zero, municipal and state government may face another round of deep cuts to any and all government services.