More U.S. underwater homeowners in third quarter: report

New York /
Nov.November 08, 2011 11:11 AM

About 28.6 percent of U.S. single-family homeowners’ mortgages are underwater as a result of a lower rate of foreclosure liquidations and relatively flat home values, compared to 26.8 percent in the second quarter, according to Zillow.com’s third-quarter market report. While the pace of foreclosures has slowed, liquidations remained high in September, with 8.7 of every 10,000 homes being liquidated.

But despite recent economic uncertainty, U.S. home values remained almost unchanged from the second quarter to the third quarter of 2011, declining by just 0.2 percent. Home values have fallen 28.8 percent since they peaked in June 2006, according to the Zillow Home Value Index, which fell 4.4 percent year-over-year to $171,500.

“We’re clearly dealing with a crisis of confidence that is keeping potential buyers on the sidelines, fueled largely by high unemployment and more general economic uncertainty,” said Zillow’s chief economist Stan Humphries. “That said, given the steady drumbeat of recent negative economic news, home values held up better than would be expected. We have been forecasting a housing bottom in 2012, at the earliest, and third-quarter data further confirms this forecast.” — Katherine Clarke


Related Articles

arrow_forward_ios
Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over
Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over
Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over
Placeholder image
Zillow to pay $50M for StreetEasy
Zillow to pay $50M for StreetEasy
Zillow's Rich Barton and Allen Parker (Getty, Zillow)
Zillow posts first loss of year as mortgages slump
Zillow posts first loss of year as mortgages slump
Zillow CEO Rich Barton (Photo Illustration by Steven Dilakian for The Real Deal with Getty)
Zillow cuts 300 jobs, citing pivot to tech
Zillow cuts 300 jobs, citing pivot to tech
Zillow's Rich Barton, Allen Parker (Zillow Group, Getty)
Zillow brushes off Citysnap threat, says agent advertising will fall
Zillow brushes off Citysnap threat, says agent advertising will fall
Zillow's Rich Barton and Opendoor's Eric Wu (Zillow Group, LinikedIn, Getty)
After iBuying debacle, Zillow partners with Opendoor
After iBuying debacle, Zillow partners with Opendoor
CoStar's Andy Florance and REBNY's James Whelan (Getty Images, CoStar, REBNY)
Oh, Citysnap! CoStar-backed platform hopes to unseat StreetEasy
Oh, Citysnap! CoStar-backed platform hopes to unseat StreetEasy
An illustration of sad homebuyers (iStock)
Housing affordability drops to 15-year low: Zillow
Housing affordability drops to 15-year low: Zillow
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...