Home value depreciation stayed constant in July with home values registering a 0.2% decline between June and July and a 3.2% decline over the past one year, according to Zillow’s July Real Estate Market Reports. Home value depreciation was -0.4% in December of 2009 and had improved in each of the subsequent six months before going sideways in July (see Figure 1 below). Considering home sales fell 27% between June and July, sideways really doesn’t seem that bad.
Foreclosure re-sales as a percentage of all sales in July notched up slightly to 18% (up one percentage point from June). Foreclosures in the month as a percentage of all homes remained at its record high rate of 0.11%.
Out of 125 metropolitan markets, 85 saw negative year-over-year change in home values in July (68%), 13 saw flat annual change (13%), and 24 saw positive annual change (19%). The markets seeing the strongest annualized change in home values were San Diego, Oklahoma City, San Jose, San Francisco, Little Rock, and Los Angeles. The markets seeing the largest declines in home values on a year-over-year basis included Bend, Miami-Fort Lauderdale, Ocala, Lakeland, Grand Junction, Detroit, and Orlando.
Dr. Stan Humphries is a real estate economist and real estate expert for Zillow. Stan is in charge of the data and analytics team at Zillow, which develops housing market data for most major metropolitan statistical areas in the U.S., and provides economic research for current real estate market conditions. He helped create the algorithms for the popular Zestimate® home value and the Zillow Home Value Index (ZHVI).