The sinking feeling in home values

Zillow: Nationwide decline to hit $2 trillion in '08

Research conducted by Zillow, a company that provides online real estate values and other information, found that U.S. home values will plunge a total of $2 trillion this year.

Home values dropped 8.4 percent year-over-year in the first three quarters of 2008 compared to the same period last year, Zillow reported today, for a total nationwide home-value loss of $1.9 trillion.

One in seven (14.3 percent) of all homeowners were underwater by the end of the third quarter, owing more on their mortgage than their homes are worth.