Industry NewsMarkets & Economy

Share of ‘underwater’ homes falls in Q2

Home values may hit bottom in last half of 2010, says Zillow
Published on Aug 9, 2010

The percentage of homes "under water" fell nationwide in the second quarter, even as home values continued to drop, according to a report by property valuation site Zillow. Zillow's Home Value Index, which tracks median home values in 440 metropolitan statistical areas across the country, fell 3.3 percent compared to the second quarter of 2009 and 0.6 percent compared to the first quarter, to $182,500. "Nationally, home values are moving in the right direction as rates of decline continue to slow. There is a large unknown on the horizon, however, as these second-quarter numbers are still heavily influenced by the federal homebuyer tax credits, which were available for homes under contract by the end of April," said Dr. Stan Humphries, Zillow's chief economist, in a statement. "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. Recent tren...

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