Home values continued to decline nationwide in October 2011, falling 0.3 percent from September's totals, according to the latest Zillow Real Estate Market Reports. However, the rate of monthly depreciation has stabilized as the housing market heads towards 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.
Regionally, 95 of the 156 of the metropolitan statistical areas (MSAs) covered by Zillow experienced monthly home value depreciation and 39 metros showed monthly home value increases. Twenty-two 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 percent and one percent, respectively.
Only 10 metros saw home value appreciation on a yearly basis, with seven of those metros also having monthly appreciation, including Fort Collins, Colo.; Madison, Wis. 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—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."
