National home values continue to decline, according to the second quarter 2010 Zillow Real Estate Market Report. However, this marks the second consecutive quarter of slowing declines – the national rate of decline decelerated again from the last quarter. Negative equity; fell from 23.3 percent last quarter to 21.5 percent in the second quarter. This is down from last year’s 23 percent.
The Zillow Home Value Index fell 3.2 percent year-over-year and 0.6 percent from the first quarter to $182,5000. The Zillow Home Value Index is the median Zestimate (Zillow’s estimated market value, computed using a proprietary formula) valuation for a given geographic area on a given day and includes the value of all single-family residences, condos, and cooperatives.
Zillow attributes different conditions across the United States to the geographically-focused differences found in the report. For example, California is offering state and federal tax credits to some homebuyers. More than a quarter of markets that Zillow tracks increased in home values in the last year, at 27.8 percent. Five of California’s markets have increased by more than 5 percent since last year’s second quarter report. The Zillow Home Value Index went up 7.3 percent year-over-year in San Diego Metropolitan Statistical Area (MSA), 5.9 percent in San Francisco MSA, 5.6 percent in San Jose MSA, and 5.5 percent in Los Angeles MSA.
Feeling the opposite statistics, Florida and Arizona remain on the steady decline. The Miami-Fort Lauderdale MSA fell 15.2 percent year-over-year and the Phoenix MSA fell 11.8 percent. For these states, high supply continues to be a big challenge.
Foreclosures reached a new peak this June. According to Zillow’s report, 0.11 percent of US homes were foreclosed on throughout the month. This is equal to one in every 1,000 homes. Foreclosure re-sales also fell in June to 16.9 percent of US home sales, which is down from the over 2010 high of 19.8 percent in February. Over one fourth of home sales in the United States, 26 percent, sold below the price the original homeowner paid when he bought the house.
To read the entire report and evaluate your zip code, visit here.
Written by Kelly Mellott