Zillow: Home Values Still Sliding
The housing market as measured by Zillow Real Estate Market Reports continued its decline in the third quarter, with home values falling for the 17th consecutive quarter.
That puts home values an average of 25 percent below where they were at the June 2006 peak. By comparison, during the Great Depression, home values fell 25.9 percent in five years.
Some 23.2 percent of single-family home owners with mortgages were underwater in the third quarter, up from 22.5 percent in the second quarter, according to Zillow. Eleven markets tracked by Zillow had negative equity above 50 percent, led by Las Vegas at 80.2 percent.
Home values fell from the second to the third quarter in 77 percent of markets covered in Zillow's report. In five of the California markets, this marked a reversal after five consecutive quarters of price increases.
"The high percentage of home owners in negative equity continues to be troubling in that it represents a huge number of people who are not only more vulnerable to foreclosure, but who are essentially trapped in their current homes and are prevented from selling and buying a new home. This has profound implications for future demand, and will be a millstone around the neck of the housing market," predicted Zillow Chief Economist Stan Humphries.
Source: Zillow.com (11/10/2010)