by Bill McBride on 5/08/2011 11:59:00 PM
Sunday, May 08, 2011
From Nick Timiraos and Dawn Wotapa at the WSJ: Home Market Takes a Tumble
Home values fell 3% in the first quarter from the previous quarter and 1.1% in March from the previous month, pushed down by an abundance of foreclosed homes on the market, according to data to be released Monday by real-estate website Zillow.com. Prices have now fallen for 57 consecutive months, according to Zillow.As I noted on Friday, Fannie and Freddie sold over 90,000 REOs in Q1; a new record. These foreclosure sales are pushing down house prices - and there are many more REOs coming (I'll try to summarize all the house price indexes, but most are showing prices at a post-bubble low).
[Stan Humphries, Zillow's chief economist] now believes prices won't hit bottom before next year and expects they will fall by another 7% to 9%.
Prices are decelerating in large part because the many foreclosed properties that often sell at a discount force other sellers to lower their prices.
• Schedule for Week of May 8th
• Summary for Week ending May 6th
• Total Fannie, Freddie, FHA REO inventory declined in Q1, Fannie and Freddie REO Sales at Record Levels
Posted by Bill McBride on 5/08/2011 11:59:00 PM