U.S. Home Values Continued Fall in October; Rate of Decline Stabilizes

by 13 Dec 2011

Home Values Likely to Fall Another 2-4 Percent Before Reaching Bottom Next Year, According to Zillow® Real Estate Market Reports

U.S. Home Values Continued Fall in October; Rate of Decline Stabilizes

SEATTLE, Dec. 13, 2011 /PRNewswire/ -- Home values in the United States continued their decline in October 2011, falling 0.3 percent from September, according to this month's Zillow® Real Estate Market Reports[i].  However, the rate of monthly depreciation has stabilized as the housing market heads towards the bottom. On a year-over-year basis, the Zillow Home Value Index[ii] declined 5.1 percent to $147,900. Home values have fallen 23.7 percent since their peak in May 2007.

Regionally, 95 of the 156 of the metropolitan statistical areas (MSAs) covered by Zillow experienced monthly home value depreciation and 39 metros showed monthly home value increases. Twenty-two metros remained flat. Encouragingly, there were some positive signs in some of the harder hit areas. In Miami, home values were flat on a monthly basis while Phoenix and Detroit both saw monthly gains of 0.2 percent and 1.0 percent, respectively. 

Only ten metros saw home value appreciation on a yearly basis with seven of those metros also having monthly appreciation, including Fort Collins, Colo., Madison, Wis. and Oklahoma City.

The foreclosure liquidation rate continued to decline in October with 8.1 out of every 10,000 homes in the country being liquidated. This is down significantly from the all-time high of 10.7 out of every 10,000 in October 2010 -- just prior to the robo-signing controversy.

"As expected, home values continue to fall in the back half of this year due to an abundance of housing supply relative to demand. Potential buyers remain on the sidelines or doubled up in other households, despite record high housing affordability and historically low mortgage rates," said Dr. Stan Humphries, Zillow chief economist. "This crisis of consumer confidence along with high rates of negative equity, are the biggest factors hindering a housing recovery. However, I'm encouraged by the positive, albeit slow, progress in working down the unemployment rate, which should help to improve consumers' appetites for buying homes."

 

Largest 25 Metropolitan Statistical Areas Covered by Zillow

Zillow Home Value Index

Foreclosures 

October 2011

MoM Change

YoY Change

Change From Peak

Homes Foreclosed

(out of every

10,000 homes)

Foreclosure Re-sales

United States

$147,900

-0.3%

-5.1%

-23.7%

8.1

19.4%

New York

$342,500

0.5%

-4.4%

-24.3%

0.4

2.6%

Los Angeles

$382,700

-0.5%

-7.4%

-37.9%

11.5

27.2%

Chicago

$163,600

-1.1%

-10.4%

-34.3%

--

--

Dallas

$120,600

-1.2%

-4.9%

-16.0%

8.3

19.9%

Philadelphia

$188,400

-0.5%

-4.6%

-18.1%

2.5

7.4%

Miami-Fort Lauderdale, Fla.

$136,800

-0.1%

-4.9%

-55.4%

--

--

Washington

$301,400

-0.2%

-1.9%

-29.6%

4.9

15.1%

Atlanta

$109,700

-1.4%

-14.7%

-37.6%

--

--

Detroit

$72,900

1.0%

-6.7%

-52.9%

--

--

Boston

$305,700

-0.6%

-2.7%

-19.4%

--

--

San Francisco

$464,000

-0.3%

-6.3%

-33.8%

12.5

26.0%

Phoenix

$120,600

0.2%

-8.4%

-56.9%

24.5

40.9%

Riverside, Calif.

$178,100

-0.2%

-5.9%

-55.7%

22.5

45.1%

Seattle

$252,400

-0.2%

-9.4%

-33.1%

11.5

25.2%

Minneapolis-St. Paul, Minn.

$164,000

-0.6%

-9.1%

-31.5%

10.5

18.9%

San Diego

$339,000

0.1%

-5.5%

-36.5%

11.3

26.6%

St. Louis

$121,500

-1.9%

-9.1%

-21.7%

--

--

Tampa, Fla.

$103,900

-0.3%

-10.7%

-52.5%

--

--

Baltimore

$214,600

-0.8%

-3.2%

-24.2%

3.1

11.3%

Denver

$203,500

-0.5%

-2.9%

-11.8%

10.0

23.6%

Pittsburgh

$106,500

0.1%

0.4%

-1.0%

2.7

8.5%

Portland, Ore.

$208,100

-0.4%

-6.8%

-26.3%

12.2

15.3%

Cleveland

$109,800

-0.8%

-5.1%

-22.6%

9.0

20.3%

Sacramento, Calif.

$201,400

-0.5%

-10.4%

-52.2%

19.2

39.0%

Orlando, Fla.

$112,600

-0.7%

-8.1%

-56.4%

--

--

 

 

New to the Zillow Real Estate Market Reports this month, Zillow has substantially increased the coverage of the Zillow Home Value Index (ZHVI) by adding 18 million homes to the Index and increasing the number of counties covered from 750 to nearly 3,000. Nationally, the addition of homes in more rural locations (typically with lower values) results in a lower national ZHVI. The full historical ZHVI time series for this new data footprint has been re-computed back to 1996 so there is no discontinuity.

The full national report, in its interactive format, will be available at www.zillow.com/home-values at 8 a.m. ET on Tuesday, Dec. 13. Additionally, in most areas, data is available at the state, metro, county, city, ZIP code and neighborhood levels.

About Zillow, Inc.

Zillow (NASDAQ: Z) is the leading real estate information marketplace, providing vital information about homes, real estate listings and mortgages through its website and mobile applications, enabling homeowners, buyers, sellers and renters to connect with real estate and mortgage professionals best suited to meet their needs. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Stan Humphries. Dr. Humphries and his team of economists and data analysts produce extensive housing data and research covering more than 150 markets at Zillow Real Estate Research. Zillow, Inc. operates Zillow.com®, Zillow Mortgage Marketplace, Zillow Mobile, Postlets® and Diverse Solutions™. The company is headquartered in Seattle.

Zillow.com, Zillow, Zestimate and Postlets are registered trademarks of Zillow, Inc. Diverse Solutions is a trademark of Zillow, Inc.

[i] The data in Zillow's Real Estate Market Reports is aggregated from public sources by a number of data providers for 156 metropolitan statistical areas dating back to 1996. Mortgage and home loan data is typically recorded in each county and publicly available through a county recorder's office.

[ii] The Zillow Home Value Index is the median Zestimate® valuation for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. It is expressed in dollars and is for a particular geographic region.

SOURCE Zillow, Inc.

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