Decline in Home Values Slowing Down

Seattle, WA, Aug. 9, 2010--U.S. home values continued to decline in the second quarter, according to tracking firm Zillow.

The company said its Home Value Index fell 3.2% year-over-year and 0.6% from the first quarter to $182,500.

However, the national rate of decline decelerated from the first quarter, marking the second consecutive quarter of slowing declines, and negative equity fell to 21.5%.

Negative equity fell from 23.3% in the first quarter, and from 23% one year ago.

Conditions varied among individual markets across the country. For example, in California, where both federal and state tax credits are available to some homebuyers, more than a quarter (27.8%) of markets tracked by Zillow saw increases in home values in the past year.

Meanwhile, home values in Florida and Arizona continued to show dramatic declines, with home values in the Miami-Fort Lauderdale MSA falling 15.2% year-over-year and home values in Phoenix falling 11.8%.

"As the national housing market limps toward stabilization, individual markets are a mixed bag," said Zillow Chief Economist Stan Humphries.

Foreclosures again reached a new peak in June, with more than one out of every 1,000 (0.11%) U.S. homes being foreclosed upon during the month. 

Foreclosure re-sales fell in June, making up 16.9% of all U.S. home sales during the month, down from a 2010 high of 19.8% in February.