Nothing Good About Latest Zillow Housing Report
The Zillow Q2 Real Estate Report is out, and there wasn’t much in the way of good news to be found from the online real estate service. Bloomberg’s Bob Ivry sifted through the data and wrote today:
Almost one-third of U.S. homeowners who bought in the last five years now owe more on their mortgages than their properties are worth, according to Zillow.com, an Internet provider of home valuations.
Second-quarter home prices fell 9.9 percent from a year earlier, giving 29 percent of owners negative equity, said Zillow, the Seattle-based service that offers values for more than 80 million homes. For those who bought at the 2006 peak of the housing market, 45 percent are now underwater, Zillow said.
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The bad news doesn’t stop at underwater mortgages. Ivry added:
Negative equity and declining prices are making it difficult for homeowners to sell property for a profit. Almost one-quarter of U.S. homes sold in the past year were for a loss, Zillow said…
Prices fell on a year-over-year basis in 140 out of 165 markets, Zillow said. Pittsburgh, Oklahoma City and Austin, Texas, were among the markets that saw rising home values, the company said.
Source:
“One Third of New Owners Owe More Than House Is Worth (Update1)”
Bob Ivry
Bloomberg, August 12, 2008
August 13th, 2008 at 11:33 pm
Your readers should understand that “home values” in the Z illow Real Estate Report are actually computer generated “estimates” of a home’s fair market value. There is no physical examination of homes to determine their value.
August 14th, 2008 at 7:26 pm
Thanks for the comment Joseph. Zillow “Zestimates” can be controversial. From the Wall Street Journal back on February 14, 2007:
“How Good Are Zillow’s Estimates?”
James R. Hagerty
http://online.wsj.com/article/SB117142055516708035.html