Real Estate Market

Zillow: Housing's hard landing due July-September 2010

(05/14/2010) Nearly one-in-four homeowners were underwater on their mortgage, foreclosures reached a new peak and home values in most U.S. market continued to slide, all in the first quarter this year.

But, says Zillow, the end is near.

Despite continued tight market conditions, housing should stop bleeding in the third quarter this year according to Zillow, a real estate information provider and home listings portal.

Healing is another matter, reports Zillow, in its first quarter Real Estate Market Reports covering 135 metropolitan markets.

"We believe national home values are more likely to reach bottom in the third quarter of 2010, rather than in the second quarter, as we had hoped. When we do get there, we expect the high rates of negative equity and foreclosures to keep national home value appreciation near zero for some time, possibly as long as five years," said Zillow Chief Economist Dr. Stan Humphries.

Zillow may be a bit conservative. Some sources predict a much longer recovery.

Humphries is, however, bullish on a third quarter landing for the housing market because home values in several large California markets have stabilized significantly, and they show tentative signs of reaching market bottom.

"As goes California, so goes the nation," is a long recited phrase of both hope and doom, depending upon which way the market is moving, given the sheer size of California's housing market and the state market's past impact on nearby states.

Zillow reported home values in the Los Angeles, San Diego, San Francisco, Santa Barbara and Ventura MSAs — have stabilized significantly in the past year, marking what may be a bottom. The areas have enjoyed slowly rising home values in the past 10 months, following property value low points in April or May 2009.

"While this is no guarantee that home values there will not fall again, it is more likely than not that they will remain above their lowest point last year, Humphries said.

Zillow's report also found:

• U.S. home values fell 3.8 percent year-over-year, and declined 1 percent quarter-over-quarter, marking the 13th consecutive quarter of year-over-year declines. Home values declined year-over-year in 106 of the 135 metropolitan statistical areas (MSAs) tracked by Zillow.

• Negative equity remains high with 23.3 percent of all single family homes with underwater mortgages up from 21.4 percent in fourth quarter. A mortgage is "underwater" when the home owner owes more than the property is worth.

• Foreclosures reached a new peak in March, with more than one out of every thousand homes (0.11 percent) facing foreclosure.

Refinance at Today's Low Rates!

 

Follow the link to continue reading the related articles

San Francisco Bay Area ground zero for national housing recovery

Housing consumers leaving hibernation for spring specials

New home sales nothing to write home about

Full housing recovery at least a decade away

Latest Housing Figures Suggest Another Dip

 

Fannie Mae & Jumbo Mortgage Rates

Just One Click! = Current Rate Chart

Pennsylvania Mortgage Rates Current Mortgage Rates - Hawaii Current Mortgage Rates - Alaska West Virginia Mortgage Rates Virginia Mortgage Rates District of Columbia Mortgage Rates Maryland Mortgage Rates Delaware Mortgage Rates New Jersey Mortgage Rates Connecticut Mortgage Rates Rhode Island Mortgage Rates Massachusetts Mortgage Rates New Hampshire Mortgage Rates Vermont Mortgage Rates New Hampshire Mortgage Rates Maine Current Mortgage Rates Vermont Mortgage Rates Current Mortgage Rates - New York Current Mortgage Rates - Michigan Current Interest Rates - Wisconsin Current Mortgage Rates - MINNESOTA Ohio Mortgage Rates Current Mortgage Rates - Kentucky Current Mortgage Rates - Indiana Illinois - Current Mortgage Rates Current Mortgage Rates - Iowa Missouri Mortgage Rates Current Mortgage Rates - North Carolina South Carolina Mortgage Rates Current Mortgage Rates - Florida Current Mortgage Rates - Georgia Current Mortgage Rates - Tennessee Current Mortgage Rates - Alabama Current Mortgage Rates - Mississippi Current Mortgage Rates - Louisiana Current Mortgage Rates - Arkansas Current Mortgage Rates - Oklahoma Current Mortgage Rates - TEXAS Current Mortgage Rates - New Mexico Current Mortgage Rates - Arizona Current Mortgage Rates - Kansas Current Mortgage Rates - Nebraska Current Mortgage Rates - Colorado Current Mortgage Rates - Wyoming South Dakota Mortgage Rates Current Mortgage Rates - North Dakota Current Rates - Montana Idaho Current Rates Washington Mortgage Rates Current Mortgage Rates - Oregon Current Mortgage Rates - Utah Current Mortgage Rates - Nevada Current Mortgage Rates - California

Start by selecting your state





Refinancing: Getting Started

Refinancing Info and Advice

Refinancing: Selecting a Loan


FREE Mortgage Rate Widgets
Your State's Rates or National Rates
Get this Widget for any State you want