With so many housing markets still facing falling property values, a “bumpy road ahead” remains for real estate and the market may not finally reach bottom until 2012, at the earliest, reports Zillow in its latest report.
More metro areas are seeing price declines in homes, with 142 — or 92 percent — of the 154 markets Zillow analyzed seeing home values decrease year-over-year, according to Zillow’s latest Home Value Index. However, about 61 percent — or 94 — did see value increases quarter-to-quarter.
“While there are many positive signs in the second quarter, and it is clear the post-tax-credit free-fall of home values is over, we’re not out of the woods yet,” Stan Humphries, Zillow’s chief economist, said in a statement. “It is very encouraging that two-thirds of markets in our report experienced home-value appreciation, but we have to remember that this is coming on the heels of one of the worst quarters since the housing recession began.
“We expect a bumpy road ahead. There will be many ups and downs in home values before this is over, and we continue to expect a true bottom in 2012, at the earliest. There are still hazards in the form of a full foreclosure pipeline, high negative equity, and fluctuations in demand.”
Nationwide, home values have dropped 28.8 percent since its peak, the report said. In the second quarter, about 26.8 percent of home owners with single-family homes owed more on their house than it was worth, according to Zillow.
Pittsburgh, Pa., was the only metro area in the country’s top 25 that boasted a median price appreciation — up 2.7 percent to $110,400.
Zillow’s report follows a day after the National Association of REALTORS® released its latest quarterly report.