The NAR published their quarterly metro home value report this past week. While there were some bright spots like Elmira, NY, which showed 11.3% year over year appreciation, there is also continued systemic weakness throughout our countries housing markets.
Broadly speaking, the median home value fell -15.6% from the 2Q of 2008 to the 2Q of 2009, this is the steepest decline on record for this quarterly report.
Additionally, all four regions within the United States were down. The Northeast, Midwest, South, and West experienced home value declines of -9.7%, -8.6%, -10.3%, and -26.6% respectively. While all real estate is local, every corner of the country is being impacted by eroding property values, every American is being affected.
Digging deeper, of the 155 metros that the NAR reported on, only 26 of them, or approximately 17% of them, showed year over year price increases in home values. While this is an improvement from the previous quarter when only 10% of the markets showed increases, the broader home value trend is still deteriorating.
Here is a look at the past several quarters and the year over year home value declines according to the NAR quarterly metro report.
2Q 2007: -1.5%
3Q 2007: -2.0%
4Q 2007: -5.8%
1Q 2008: -7.7%
2Q 2008: -7.7%
3Q 2008: -9.0%
4Q 2008: -12.4%
1Q 2009: -13.8%
2Q 2009: -15.6%
While there is debate about the potential for home sales to have bottomed, what continues to be overlooked is that the number of foreclosure filings continue to set new records. In the absence of a meaningful surge in demand to absorb these foreclosures, home values will continue to deteriorate as this report shows.