Home values projected to plummet in 2010
12/09/2010
By Credit.com Staff
Home values in the U.S. are likely to decline $1.7 trillion by the end of 2010, data shows. The Zillow Real Estate Market Report reveals the steep decline is 63 percent higher than the home value losses recorded in 2009.
The report shows the latter half of 2010 saw the sharpest declines in home value, which topped nearly $1 trillion between June and December. Analysts did not express optimism that values would show any significant improvements in the first half of 2011.
"Unfortunately, with foreclosures near an all-time high in late 2010 and high rates of negative equity persisting, it does not appear that the first part of 2011 will bring much relief," the report said.
The figures do not inspire much hope for struggling homeowners who are making large mortgage payments on their underwater homes. Falling values also leave homeowners with few options, as they do not qualify for mortgage loan modifications or refinance agreements. Many have resorted to strategically defaulting on their mortgage loans, resulting in credit score damage and an inability to secure another home loan for at least seven years.
