'Underwater' Homes Rose to 28 Percent in Q1
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More depressing data was reported on the U.S. housing market this weekend, with real estate website Zillow.com saying that negative equity in the first quarter reached a new high of 28.4 percent.
Underwater homeowners rose from 22 percent in the same quarter last year and was up from 27 percent in the fourth quarter. The data comes as home prices in March slid 8.2 percent from last year and one percent from February.
A astonishing 37.7 percent of homes sold in March were sold at a loss, Zillow also reported.
Foreclosure sales continue to flood the market, peaking in March at 23.7 percent of all sales the website reported. Foreclosure sales are up from 17 percent last year and have steadily rose since June when they made up 14 percent of sales.
Due to the larger depreciation, Zillow lowered their 2011 home value decline estimate from 5-7 percent to 7-9 percent. The forecast for a bottom in home prices moved from late 2011 to 2012 as the soonest.
Underwater homeowners rose from 22 percent in the same quarter last year and was up from 27 percent in the fourth quarter. The data comes as home prices in March slid 8.2 percent from last year and one percent from February.
A astonishing 37.7 percent of homes sold in March were sold at a loss, Zillow also reported.
Foreclosure sales continue to flood the market, peaking in March at 23.7 percent of all sales the website reported. Foreclosure sales are up from 17 percent last year and have steadily rose since June when they made up 14 percent of sales.
Due to the larger depreciation, Zillow lowered their 2011 home value decline estimate from 5-7 percent to 7-9 percent. The forecast for a bottom in home prices moved from late 2011 to 2012 as the soonest.
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