I’m doing a re-fi on my house and just got the appraisal back yesterday. The bad news: It’s now worth about half what it was worth three years ago. The good news: Well, there really isn’t any.
Of course, I live in California so the drop has probably been more precipitous than the drop in most areas, but still…
The point is that anyone who tells you the real estate market is getting better is dreaming. Or lying. Take your choice.
Want more proof than the idle ramblings of a disgruntled California homeowner? Check out the latest findings from Zillow Real Estate Research:
“Home values fell three percent in the first quarter of this year, marking a pace of decline not seen since 2008 when the housing recession was at its worst.
“Home values fell one percent between February and March and 8.2 percent from March 2010. The cumulative decline in home values since the market peak is now 29.5 percent (see Figures 1 and 2).”
These charts tell the terrible tale:
Some of the report’s other lowlights include these gems:
• Nearly three-quarters (74.5 percent) of homes in the United States lost value from Q1 2010 to Q1 2011. That’s up from Q4 2010, when 69.2 percent had lost value, but is down substantially from a peak of 85.5 percent in Q1 2009.
• Negative equity in the first quarter reached new high with 28.4 percent of all single-family homes with mortgages underwater, from 27 percent in Q4.
Foreclosure re-sales reached a new peak in March 2011, representing 23.7 percent of all sales during the month compared to 17 percent in March 2010.
• Foreclosure re-sales have been increasing steadily since June, when they made up 14 percent of all sales.
• The supply picture continues to look bad with approximately two million homes in the foreclosure process and another more than 1.5 million homes seriously delinquent.
The real estate picture is uglier than Osama Bin Laden’s favorite wife. And it ain’t getting prettier any time soon.