New Report Warns Of "Unprecedented Decline" In Home Values And No stabilisation In Q3

stan humphries

Zillow just released a devastating third quarter housing report. Basically every major indicator is crashing:

  • The decline in home values accelerated in September, dropping 0.4% month-over-month
  • Foreclosures reached an all-time high
  • A record 23.2% of mortgages are now underwater

The double dip — already a rare phenomenon — is now entering an unprecedented free-fall. Zillow economist Stan Humphries says prices won’t hit bottom until next summer at the earliest, as foreclosure activity grows.

Humphries warns: “While not unexpected, the unceasing declines in home values signal that we’re in for a long, bleak winter of continued troubles for the housing market. The length and depth of the current housing recession is rivaling the Great Depression’s real estate downturn, and, with encouraging signs fading, will easily eclipse it in the coming months.

Minneapolis, Minn. has dropped 7.8% YOY

Home value index: $177,200

QoQ change: -3.5%

Change from peak: -28.2%

Negative equity: 36.8%

Source: Zillow

Baltimore, Md. has dropped 8.6% YOY

Home value index: $231,800

QoQ change: -2.7%

Change from peak: -22.2%

Negative equity: 20.8%

Source: Zillow

Portland, Ore. has dropped 9.1% YOY

Home value index: $223,500

QoQ change: -2.6%

Change from peak: -24.3%

Negative equity: 25.2%

Source: Zillow

Tampa, Fla. has dropped 9.1% YOY

Home value index: $115,700

QoQ change: -1.9%

Change from peak: -46.3%

Negative equity: 46.8%

Source: Zillow

Memphis, Tenn. has dropped 9.4% YOY

Home value index: $98,700

QoQ change: -4.3%

Change from peak: -19.8%

Negative equity: N/A

Source: Zillow

Jacksonville, Fla. has dropped 10.6% YOY

Home value index: $134,800

QoQ change: -1.7%

Change from peak: -35.2%

Negative equity: N/A

Source: Zillow

Seattle, Wash. has dropped 10.6% YOY

Home value index: $273,500

QoQ change: -4.3%

Change from peak: -28.2%

Negative equity: 27.7%

Source: Zillow

Detroit, Mich. has dropped 10.8% YOY

Home value index: $81,300

QoQ change: -2.8%

Change from peak: -48.3%

Negative equity: 30.0%

Source: Zillow

Orlando, Fla. has dropped 11.9% YOY

Home value index: $123,400

QoQ change: -1.9%

Change from peak: -52.1%

Negative equity: 64.2%

Source: Zillow

Phoenix, Ariz. has dropped 12.8% YOY

Home value index: $131,400

QoQ change: -4.1%

Change from peak: -53.1%

Negative equity: 68.4%

Source: Zillow

Atlanta, Ga. has dropped 13.2% YOY

Home value index: $134,200

QoQ change: -5.3%

Change from peak: -26.0%

Negative equity: 37.6%

Source: Zillow

Miami, Fla. has dropped 15.2% YOY

Home value index: $143,300

QoQ change: -4.2%

Change from peak: -53.3%

Negative equity: 42%

Source: Zillow

These small cities are crashing even harder than Miami

Bend, Ore. has dropped 17.4% YOY and has 38.8% negative equity.

Ocala, Fla. has dropped 19.8% YOY and has 37.8% negative equity.

Source: Zillow

This is what a national double dip looks like

Now see how this could lead to a new financial crisis...

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