U.S. home values continued their decline in October, falling 0.3% from September, according to this month's Zillow Real Estate Market Reports. On a year-over-year basis, the Zillow Home Value Index declined 5.1% to $147,900. Home values have fallen 23.7% since their peak in May 2007.
Regionally, 95 of the 156 metropolitan statistical areas (MSAs) covered by Zillow experienced monthly home value depreciation and 39 MSAs showed monthly home value increases. Twenty-two MSAs remained flat.
However, Zillow adds that some hard-hit MSAs are showing signs of stabilizing: Miami's home values were flat on a monthly basis, while Phoenix and Detroit both saw monthly gains of 0.2% and 1%, respectively.Â
Zillow also found that 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 from the all-time high of 10.7 out of every 10,000 in October 2010, which occurred just prior to the beginning of 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,’ says Dr. Stan Humphries, Zillow's chief economist. ‘Potential buyers remain on the sidelines or doubled up in other households, despite record-high housing affordability and historically low mortgage rates. 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.’