More than 28 percent of U.S. homeowners owed more than their properties were worth in the first quarter 2011 as values fell the most since 2008, according to Zillow Inc.
Home prices slumped 8.2 percent over the past 12 months. About 27 percent of homes with mortgages were “underwater” in the fourth quarter 2010. Homeowners with negative equity were at 22 percent in the first quarter of 2010.
from just over $375,000 in 2006 to $246,000 in 2001 through 3/31/2011.
Home prices fell 3 percent in the first quarter and are forecast to drop as much as 9 percent this year as foreclosures spread and unemployment remains high, according to Zillow Chief Economist Stan Humphries. He predicts prices won’t find a floor until 2012 at the earliest.
Zillow Blog First Quarter Brings More Dismal News for Housing Market