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Home Values Continue To Decline To Near Unprecedented Levels
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November 10, 2010 2:33 p.m. EST
Topics: construction and property, business, economy, business and finance, real estate, United States
Ayinde O. Chase - AHN News Editor
Seattle, WA, United States (AHN) - U.S. third quarter home values fell for the 17th consecutive quarter. Home values are now on average 25 percent below their June 2006 peak.
Rising from 22.5 percent in the second quarter, 23.2 percent of single-family homeowners with mortgages were underwater on their mortgage in the third quarter.
In some markets, as many as four out of five single-family homeowners with mortgages were underwater on their mortgages in the third quarter. Las Vegas had the highest percentage, with 80.2 percent in negative equity, followed by Phoenix with 68.4 percent.
"While not unexpected, the unceasing declines in home values signal that we're in for a long, bleak winter of continued troubles for the housing market," said Zillow Chief Economist Dr. Stan Humphries. "The length and depth of the current housing recession is rivaling the Great Depression's real estate downturn, and, with encouraging signs fading, will easily eclipse it in the coming months.
In five California metro area markets- Los Angeles, San Diego, San Francisco, San Jose and Ventura – home values began to fall again after five consecutive quarters of increases. Other markets such as Boston and Denver showed signs of stabilization in previous quarters but are now faltering by showing signs of flattening or becoming negative.
"The high percentage of homeowners 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."
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