Current Events, Home Prices, Negative Equity

US homes lose $2 trillion in 2008

 

From CNN:

American homeowners will collectively lose more than $2 trillion in home value by the end of 2008, according to a report released Monday.

The real estate Web site, Zillow.com, calculated that home values have dropped 8.4% year-over-year during the first three quarters of 2008, compared with the same period of 2007.

Some 11.7 million Americans are now “underwater,” owing more on their mortgage balances than their homes are worth.

Zillow collects home values and analyzes home price trends in 163 markets; all but 30 registered price drops over the nine months ended September 30, compared with the same nine-month period of 2007.

“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. “Homeowners in most areas we cover are struggling with foreclosures pouring into the market, large amounts of negative equity and dropping home values.”

Two trillion dollars in lost home value, and there is still no end in sight.

Erika, originally uploaded by terryhadalittlelamb.

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