Dec 13, 201109:36 AMBlog
Home values continue to fall
In the South Sound, values were down 0.7 percent in Olympia to $208,100 and off 1.3 percent in Tacoma to $154,300. However, the rate of monthly depreciation has stabilized nationwide as the housing market heads toward the bottom. On a year-over-year basis, the Zillow Home Value Index declined 5.1 percent to $147,900. Home values have fallen 23.7 percent since their peak in May 2007.
The foreclosure liquidation rate continued to decline during 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 of every 10,000 during 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."