Florida is home to nations worst housing markets

While Florida is always an appealing relocation option, people looking to invest in a new home may want to stay away from the Sunshine State, whose housing market continues to decline.

Price growth projections from Veros Real Estate Solutions determined that Florida is home to the top 5 metropolitan statistical areas in the nation experiencing the weakest growth. In 2011, residential home prices are expected to decline by 8 to 10 percent in the Daytona Beach, Melbourne, Naples, Orlando and Port St. Lucie areas.

Florida cities made up 7 of the 10 MSA's in the nation with the largest projected price decrease, along with two areas in Nevada and one in Michigan.

“Florida remains ground zero for the weakest home price forecasts in the US, although extreme declines of 20% or 25% are no longer expected since strong price corrections have already occurred,” said Veros' vice president of statistical and economic modeling.

Foreclosed properties made up 37 percent of Florida residential sales in the third quarter of this year, an alarming amount since foreclosed properties usually account for 2 to 3 percent of sales in a traditional market, reported The Palm Beach Post. 

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