Seattle-based Zillow reports that home values continued to decline in the second quarter of this year, with the Zillow Home Value Index falling 3.2% year-over-year and 0.6% from the first quarter, to $182,500.Â The national rate of decline decelerated from the first quarter, marking the second consecutive quarter of slowing declines, and negative equity fell to 21.5% from 23.3% in the first quarter and from 23% one year ago, according to the newly released second-quarter Zillow Real Estate Market Reports.
Zillow found that conditions varied among individual markets across the country. In California, 27.8% of markets saw increases in home values in the past year. However, home values in Florida and Arizona continued to show dramatic declines, with home values in the Miami-Fort Lauderdale market falling 15.2% year-over-year and home values in the Phoenix metropolitan area falling 11.8% for the same period.
Foreclosures reached a new peak in June, with more than one out of every 1,000 – or 0.11% – of homes being foreclosed upon during the month. Foreclosure resales fell in June, making up 16.9% of all home sales during the month, down from a 2010 high of 19.8%.
Stan Humphries, Zillow's chief economist, is cautious in predicting the housing market's near-term future.
‘Nationally, home values are moving in the right direction as rates of decline continue to slow,’ he says. ‘There is a large unknown on the horizon, however, as these second quarter numbers are still heavily influenced by the federal home buyer tax credits, which were available for homes under contract by the end of April.’
‘Home sales are declining significantly in the post-tax credits environment, but the impact of falling home sales on already-declining home values is yet to be seen,’ he continues. ‘Recent trends in home values suggest the nation could reach a bottom in the latter half of 2010, but we continue to be cautious about the impact of declining home sales.’