Housing Market Continues To Take A Pounding
As new indicators on the languishing national housing market continue to stream in it remains apparent that the crisis brought about by the bursting of the housing bubble is far from over. Newly released figures reveal that the prices of houses declined with greater speed during the opening quarter of this year than at any point since the most severe consequences of the crisis became evident. This is based on information released in the Real Estate Market Report which has been made available by Zillow.
It has been predicted that the lowest point in the housing market decline will not be reached until 2012 at the earliest. If that’s the case, the process of full recovery will take a period of quite a few years. Zillow’s Home Value Index decreased to just under $170K, a drop of 3% compared to the 4th quarter of 2009. The company’s index explains the average valuation for a designated geographic location on a designated day. It incorporates the value of all condominiums, cooperatives and single-family homes. Information relevant to mortgages and home loans are generally noted in each county and is publicly accessible via a county recorder’s office.
To better understand the magnitude of the decline in the housing market, consider this: The prices of homes have, on average, decreased by just slightly less than 30 percent from the height of the peak in June 2006. That figure represents a massive hit for most homeowners in America.
Given the fact that the decline has shown no signs of slowing down during the first quarter of the year, it is overly optimistic to expect any stabilization in home prices by the end of this year. Only a small number of markets did not experience home value decreases this past quarter. The overwhelming majority of housing markets in the study (ninety-seven percent) faced decreasing values.
In light of this kind of news, it becomes increasingly clear that many Americans will require honest and authoritative assistance with loan modifications in the next few years. The burden that many are under in the present economic climate makes it simply impossible to meet existing mortgage obligations.