Real Estate Market Watch - 2nd Quarter, 2008

U.S. Home Values Dropped Nearly 10% in Q2 Leaving Almost One-Third of Homeowners Who Bought in  the Past Five Years Underwater on Their Mortgages.  One in four homes sold in the past year was for a loss; Foreclosed homes account for 50% of all home sales in some markets, according to Q2 2008 Zillow® Real Estate Market Reports

U.S. home values in the second quarter posted the largest year-over-year decline in the past 12 years, dropping 9.9 percent from the year-ago quarter and 1.7 percent from the first quarter to a U.S. Zillow Home Value Index (HVI) of $206,919, according to the Q2 Zillow Real Estate Market Reports released today. The median U.S. home value has not been this low since the fourth quarter of 2004, leaving nearly one-third (29.1%) of homeowners who purchased since 2003 with negative equity.