Residential real estate in the U.S. continues to drop as the market struggles to find a bottom, according to the latest report from Zillow. October real estate prices fell 0.3% from the previous month, and the the Zillow Home Value Index also dropped 5.1% to $147,900 for the year. The information was gathered from 156 metropolitan areas, 95 of which experienced price falls. Some areas fared better than others, however, with slight gains seen in the hard-hit markets of Phoenix and Detroit, and flat performance in Miami. Analysts blame oversupply and low buyer confidence on the year-end results. For more on this continue reading the following article from Property Wire.
Residential property values in the United States continued their decline in October 2011, falling 0.3% from September, according to latest real estate market report from Zillow published today (Tuesday 13 December).
However, the rate of monthly depreciation has stabilized as the housing market heads towards the bottom, the firm said.
On a year on year basis, the Zillow Home Value Index declined 5.1% to $147,900. Home values have fallen 23.7% since their peak in May 2007.
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Regionally, 95 of the 156 of the metropolitan statistical areas covered by Zillow experienced monthly home value depreciation and 39 metros showed monthly home value increases. Some 22 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% and 1% respectively.
Only ten metros saw home value appreciation on a yearly basis with seven of those metros also having monthly appreciation, including Fort Collins, Colorado, Madison, Wisconsin 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.
‘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 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,’ he added.
This article was republished with permission from Property Wire.