Home Equity Stripped Away in 2008; Nearly $2 Trillion in Home Values Lost This Year

Source: Zillow.com
Posted: December 15, 2009

SEATTLE, Dec. 15 /PRNewswire/ — U.S. homes are set to lose well over $2 trillion in value during 2008, according to analysis of recent Zillow Real Estate Market Reports (1). Home values declined 8.4 percent year-over-year during the first three quarters of this year, compared to the same period in 2007.

“Underwater” was the real estate buzzword of the year. U.S. home values (2) lost $1.9 trillion from the first of the year through the end of the third quarter, and were likely to fall further in the fourth quarter, leaving approximately 11.7 million American households owing more on their mortgage than their homes are worth. One in seven of all homeowners (14.3 percent) were underwater by the end of the third quarter.

“This year marked the acceleration of the market correction, and is likely to end with the eighth consecutive quarter of declines in home values,” said Dr. Stan Humphries, Zillow’s vice president of data and analytics. “In general, homeowners in most areas we cover are struggling with foreclosures pouring into the market, large amounts of negative equity and dropping home values. On the positive side, in the third quarter, some markets – particularly those hit hardest in the downturn – showed smaller year-over-year declines than in the prior quarter. Our optimism here, though, must be tempered by the knowledge that the larger economic problems that emerged in the fourth quarter will likely further challenge the real estate market.”

Thirty of the 163 metropolitan statistical areas (MSAs) covered in the Zillow Real Estate Market Reports showed gains in the Zillow Home Value Index (3), or median value of all homes in the area, over the first three quarters of the year, with the Jacksonville, N.C. region seeing year-over-year appreciation of 4.9 percent. The change in value was calculated by averaging the year-over-year change in each of the first three quarters of the year.

Also performing well were the Winston-Salem, N.C. and Anderson, S.C. MSAs, with year-over-year increases of 4.1 percent and 3.5 percent, respectively, over the first three quarters of the year.

The Stockton, Calif. region fared the worst in the first three quarters of 2008, with home values sliding 32.3 percent year-over-year. The Merced, Calif. area followed with home values declining 31.2 percent year-over-year in the first three quarters of 2008.

View Link for additional information: Zillow.com

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The information herein is believed to be accurate but not guaranteed and may be subject to errors, omissions and changes without notice. This is not to be construed as a solicitation of property presently listed for sale. All information is derived from the Palm Beach County Property Appraisers website and the MLS.

The information herein is believed to be accurate but not guaranteed and may be subject to errors, omissions and changes without notice. This is not to be construed as a solicitation of property presently listed for sale.

All information is derived from the Palm Beach County Property Appraisers website and the MLS.

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Luxury Resort Portfolio – "The Definitive Source For Luxury Real Estate In South Florida" is Co-Founded by Boca Raton luxury real estate specialist Philip Lyle Smith and South Florida luxury real estate broker Carla Ferreira-Smith, collectively known as, “The Smiths”… and together we represent, market and sell the most prestigious Baca Raton Oceanfront Estates and Waterfront Luxury Real Estate. As former Sotheby’s International Realty and Christie’s International Real Estate affiliates and an authority in Boca Raton luxury real estate for more than a decade, Palm Beach County Realtors,The Smiths, specialize in the sale and acquisition of fine properties found along the Gold Coast of South Florida from Miami to Ft. Lauderdale and Boca Raton to the Palm Beaches. Philip and Carla Smith bring a sincere commitment to their profession and offer their clients incomparable firsthand knowledge and experience. Devoted and committed to our clients’ confidentiality, we provide our trusted advice and are appreciated for our family values with a great deal of respect for home and community. Representing both buyers and sellers of the finest residential luxury real estate in South Florida from the oceanfront estates of Highland Beach and Delray Beach through the waterfront intracoastal homes of Manalapan, Gulf Stream and the mansions of Palm Beach, Luxury Resort Portfolio instills in its’ real estate professionals the importance of understanding how personal the decision is to buy or sell your home and that that the procedure should not only be stress-free... but financially rewarding. It is with great pride that Philip Lyle Smith and Carla Ferreira-Smith offer to you their superb client services.