Forget the idea that home depreciation will level off anytime soon….
Zillow’s just released housing report reinforced the fact that Home values are very much on the decline. Actual numbers, home values fell 3% quater over quater, the largest decline since late 2008. You read that correctly, home values are falling 1% per month.
Is it possible that homes will lose 1% per month for the rest of 2011….in other words, will homes depreciate nationally 12% in 2011?
Absolutely.
Stan Humphries, economist with Zillow. “We now believe a bottom will come in 2012, at the earliest.”
Home prices have fallen for 57 consecutive months. Thus far in 2011, nearly 75 percent of all homes in the U.S. lost value during the first quarter. The hardest hit metro areas were Ocala, Fla.; Puebos, Co., Detroit, and Atlanta. Only one market — Honolulu — showed improvement. Home values have fallen 8.2 percent from March 2010, Zillow said, and are down nearly 30 percent since the market peak in June 2006.
Underwater owners reached a new high in the first quarter . 28.4 percent, up from 27 percent at the end of 2010. Based on the current rate of depreciation, 40% of all homeowners with a mortgage will be underwater (mortgage balance greater than market value) later this year.
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