Fort Lauderdale, once a popular spot for spring breakers and retirees, is going through tough times with its real estate market from both a state and national perspective. Many factors have contributed to this and the forecast is not sunny any time soon.Declining Home PricesFort Lauderdale will see its home prices decline 11.1 percent decline in medina home prices as forecasted by Fiserv. Looking ahead through the end of the first quarter in 2013, decreases will be even greater, going all down to 18.9 percent (or an 8.7 percent decrease) on the Ft. Lauderdale real estate owned 686,000 homes.ForeclosuresFt. Lauderdale, which is part of Broward County, saw 42 percent of homes and condominiums sales in some chapter of foreclosure during the second quarter of 2011. This represents a slight increase from the previous year according to RealtyTrac Inc. These homes in Ft. Lauderdale are real estate owned properties that either are in default, scheduled for an auction, or possibly owned by the bank. Also at the top of state rankings, this same three-city area leads in delinquency rates at 23.6 percent. This number is derived by combining the foreclosure and 90+-day delinquency rate.Foreign Investors Buying PropertiesAround the nation, foreign investors are making real estate investments on cheap homes across the county. It is cheaper for them than buying financial products from their countries and Ft. Lauderdale has landed on the list as an attractive city.Many of the foreigners come from all over, including Europe and South America; the Canadians are particularly interested in this warm weather destination. In 2010, Florida had eight percent of its resale homes purchased by Canadians. This came to a $2.1 billion value of the Florida homes and last year, the Canadians owned a total of $50 billion on Florida residential real estate. This is good for the economy as homes get off the market, cease the foreclosure process and homes become occupied again, increasing values for neighboring residences.Is the Market Poised for Collapse?Recently, Ft. Lauderdale had been named by the financial Web site, 24/7 Wall Street as one of 10 cities in the country that endures declines and may be in a situation for a collapse.Where does this projection come from? When putting together a forecast, it sees Ft. Lauderdale’s home values dropping 11.1 percent. By taking a look back at the last few years, Ft. Lauderdale’s home prices since 2006 have dropped almost 50 percent. In 2009, 28 percent of the value drop took place. It joined the state in seeing the construction industry economy become crushed and the city’s high 12 percent unemployment rate is not a positive.High State UnemploymentThe current unemployment rate sits at and recently Fiserv projected an unemployment rate of 11.8 percent. For Ft. Lauderdale, they will reach rock bottom in the second quarter of 2013.In July, according to the Bureau of Labor Statistics, the state of Florida lost 22,100 jobs. This is the second greatest drop in the nation. Florida had its unemployment rate increase to 10.7 in July, up from 10.6 percent in June. This is above the national July unemployment rate of 9.1 percent.Numbers were even higher for the neighboring city trio of Miami, Ft. Lauderdale, and Pompano Beach. Its July unemployment figure was 11.3 percent. This placed them as the 10th highest unemployment area in the state.Ft. Lauderdale is not projected to see any improvements for the next few years. Its housing market is tied to the employment rates and until Florida, as well as Ft. Lauderdale, continues battling with high numbers, the housing market will take time to improve. The city has a high appeal and will recover.