Zillow Publishes Q4 Real Estate Market Report, Ouch

image Zillow recently published its Q4 2008 Real Estate Market Reports which shows that American homeowners collectively saw $3.3 trillion erased from the value of their real estate in 2008.  Those type of numbers aren’t good for anyone let alone the reverse mortgage industry.

Below are some other highlights from the report.

  • More than one-third (34.6 percent) of homes sold in 2008 were sold for a loss, up from 30.2 percent for the twelve months ending Q3 2008. While the $3.3 trillion in loss home value in 2008 can be considered akin to an unrealized loss in the stock market (i.e., people who don’t sell can wait for market values to rise again before selling, thus minimizing their particular loss), the loss for these one-third of homeowners is all too real.
  • One in six (17.6 percent) of all homeowners is now underwater.  The Modesto and Vallejo, Calif., markets have the worst negative equity, with more than 80 percent of all homeowners there underwater.
  • The higher rates of negative equity and increasing economic insecurity are combining to push foreclosure rates higher. One in five (19.9 percent) of all real estate transactions across the country in 2008 was a foreclosure. This was an increase from Q3, when 18.6 percent of all transactions were foreclosures.
  • Unfortunately, the foreclosure numbers don’t even tell the whole story of the numbers of homeowners having to give up their homes, as 10.9 percent of all transactions in the United States in 2008 were short sales, or homes sales where the lender agreed to a home price less than the amount owed on the mortgage in order to avoid the cost and time of a foreclosure.

Q4 2008 Real Estate Market Reports

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  • I have a good question for you. How in the world can the DOW be up on Friday? You have dismal real estate figures, Absolutely Depression like Unemployment numbers, an insolvent government that doesn’t know how to manage any of the taxpayers money whatsoever, but somehow, someway the DOW is up because the financial companies and banks see a little bit of buying from bottom figures????????

    Do you think our Government is trying to pull the wool over the eyes of their citizens once again with pure propaganda and complete manipulation of the markets?

    I think that is very self-explanatory!

    I for one am not buying it one bit.

    Soon enough the markets are going to have the floor completely fall out from underneath. Then I wonder what our great government is going to come up with??

    God Bless the USA more than ever!

  • The Reverse Mortgage professionals service is explaining the benefits based on the use current value of existing equity in their homes to improve the lives of seniors now. It’s time vs. money. Only one is real.

    With property values falling, pensions suffering from the market vagaries, senior too share the impact of the decline in values of homes.

    Fortunately, those that can still take advantge of a reverse mortgage, if it makes sense, or is the best option at this time, they will enjoy the fruits of their labors now vs. waiting for the real estate bottom to come and go and hopefully not running out of the time they have to enjoy themselves by then.e

    Pretty simple really, what’s important and to whom?

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