Zillow: See the Worst Home Prices Drop Since 2008
According to Zillow, home values in the United States posted their largest quarter-over-quarter decline since Q4 2008, falling 3 percent. Negative equity reached a new high of 28.4, due to accelerating home value declines.
Nearly three-quarters (74.5 percent) of homes in the United States lost value from Q1 2010 to Q1 2011. That’s up from Q4 2010, when 69.2 percent had lost value, but is down substantially from a peak of 85.5 percent in Q1 2009.
A record (37.7 percent) number of homes sold in March were sold for a loss. The rate of homes selling for a loss has steadily increased since June 2010.
This new data reveals a bottom in home values is unlikely to appear in 2011. Thus, Zillow has revised its forecast and now predicts a bottom in 2012 at the earliest.
Keep an eye on Home builders (NYSE:XHB) today to see how they react to the news: D.R. Horton Inc. (NYSE:DHI), PulteGroup, Inc. (NYSE:PHM), KB Home (NYSE:KBH), Lennar Corporation (NYSE:LEN), Toll Brothers, Inc. (NYSE:TOL), The Ryland Group, Inc. (NYSE:RYL), Hovnanian Enterprises, Inc. (NYSE:HOV), Beazer Homes USA, Inc. (NYSE:BZH), Standard Pacific Corp. (NYSE:SPF), and NVR, Inc. (NYSE:NVR).