Zillow: Home Values Hold Steady, Foreclosures Slow

October 12, 2011

Home prices mostly held flat in August, increasing a modest 0.1 percent from July to August, according to Zillow’s latest Home Value Index. 

Two of the nation’s hardest-hit housing markets, Detroit and Fort Myers, Fla., posted slight price gains in August, now marking several consecutive months of appreciation. But 74 real estate markets experienced slight depreciation in August in home values while 15 housing markets stayed flat, including Los Angeles, Dallas, Chicago, and Miami-Fort Lauderdale, Fla. 

Overall, home values have fallen 4.5 percent to $172,600 year-over-year (August 2011 compared to August 2010), according to Zillow. Since reaching its peak in June 2006, home values have fallen 28 percent. 

"At this point, we maintain the expectation that a definitive bottom will not occur until 2012 at the earliest," Stan Humphries, Zillow’s chief economist, said in a statement.

Meanwhile, the foreclosure liquidation rate -- the number of homes lost to the bank -- has continued to slow. In the latest survey, it continued to hold steady at about 9.2 out of every 10,000 homes foreclosed. 

"Due to the robo-signing controversy, the pace of foreclosure liquidations has been slower than it would be otherwise, which is impacting home value trends positively,” Humphries says. “Eventually the pace will pick up again, putting more bank-owned homes into local markets and putting additional downward pressure on prices."

Foreclosures remain highest in Las Vegas and Phoenix, in which more than 30 out of every 10,000 homes were liquidated in August, according to Zillow. 

By Melissa Dittmann Tracey, REALTOR® Magazine Daily News