Good News for Reverse Mortgages: Home Values Have Stabilized says Zillow

image Home values stabilized significantly during the second half of 2009, with the total dollar value of U.S. homes increasing since June said Dr. Stan Humphries, Zillow’s chief economist.

According to Zillow, US homes lost $489 billion in home values during the first 11 months of 2009, significantly less than the $3.6 trillion lost during 2008, according to analysis of recent Zillow Real Estate Market Reports.

The stabilization in home values led to easing rates of negative equity in the third quarter of 2009, with 21 percent of all single-family homeowners with mortgages underwater, compared to 23 percent in the second quarter.

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"Most housing markets across the country had a good summer, spurred largely by the government’s tax credits for homebuyers combined with very low mortgage rates,” said Humphries.

I’ve said that the reverse mortgage industry needs housing to bottom in order to grow, this is a good step in that direction. 

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  • I have an idea…..we develope a way to keep appraisers informed on what is being reported (ex; this article). This could be difficult because the appraisers that I use apparently all live in caves with no outside contact to what is apparently going on. The word to appraisers from 35,000 feet is “generate values as low as you feel that you can get by with”…oh, and then you will receive your check no matter if the loan funds or not!

  • By the way I forgot to add this little fact. I had a loan that cancelled due to low appraisal. Zillow stated the home was $325K and it came in at $220K. Zillow needs to wake up!

  • Your politics are showing. When the economy collapsed under Bush he looked like a deer in the headlights, he couldn’t leave the scene of the crime fast enough!

  • I have not found Zillow or CyberHomes to be reliable on-line indicators of individual home values. As Shannon Hicks says, they give you an indication of the current trend. More useful (and conservative) is Chase's on-line valuation tool, driven by First American CoreLogic. To get several on-line valuations at once, try eppraisal.com, then take an average of them. Finally, don't forget to use a tool such as Google Earth or Streetview to look at the subject home and the comparables, then make some educated adjustments based on condition, location, etc.

  • I have not found Zillow or CyberHomes to be reliable on-line indicators of individual home values. As Shannon Hicks says, they give you an indication of the current trend. More useful (and conservative) is Chase’s on-line valuation tool, driven by First American CoreLogic. To get several on-line valuations at once, try eppraisal.com, then take an average of them. Finally, don’t forget to use a tool such as Google Earth or Streetview to look at the subject home and the comparables, then make some educated adjustments based on condition, location, etc.

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