US Home Values To Drop $1.7 Trillion In 2010

[marmar]

from 24/7WallStreet:




US Home Values To Drop $1.7 Trillion In 2010
Posted: December 9, 2010 at 8:14 am


The aggregate value of homes in the United States will drop $1.7 trillion this year after a drop of $1 trillion in 2009. That data comes from a report from real estate research firm Zillow.

Zillow also says that “Since the peak of home values in June 2006, more than $9 trillion in values has come out of the housing market.”

Several analysts believe the free fall is not over. Recently S&P predicted home prices could drop another 7% to 9% next year. The trend is based to a large extent on high unemployment and the fear of potential home buyers that price will dive further. Banks are also reluctant to make mortgage loans to all but the most credit-worth buyers.

Nearly 11 million mortgages are underwater in the US. Economists say that the owners of the homes with these mortgages are more likely to default because they see not financial future in holding the real estate particularly if they are in financial difficulty. RealtyTrac estimates that total foreclosures and bank repossession of homes will rise to 3 million this year. There is also a “shadow inventory” of about 2 million homes which have been foreclosed upon but not put onto the market for sales. .............(more)

The complete piece is at: http://247wallst.com/2010/12/09/us-home-values-to-drop-1-7-trillion-in-2010/#ixzz17ci0sXHo