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Wednesday
Nov102010

Housing Downturn Reaching Great Depression-Era Declines

(SEATTLE) – As the U.S. housing market slips into its 17th consecutive quarter of decline, a new report warns that the housing crisis may reach depths not seen since the Great Depression.

According to third-quarter Zillow Real Estate Market Reports, home values have fallen 25 percent since peaking in 2006, a drop reminiscent of the Great Depression era, which saw a 25.9-percent drop in home values over five years.

"While not unexpected, the unceasing declines in home values signal that we're in for a long, bleak winter of continued troubles for the housing market," said Dr. Stan Humphries, Zillow’s chief economist.

The percentage of homeowners underwater on their mortgage has also reached a new peak. In the third quarter, 23.2 percent of single-family homeowners were in trouble with their mortgage. That is the highest percentage since Zillow started to track the figure in 2009.
 
Foreclosures have also reached an all-time high as 1.2 out of every 1,000 homeowners in the U.S. lost their homes to foreclosure in September.

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