Home values fall for first time in over 2 years says Zillow

Zillow's April Real Estate Market report has national home values slipping 0.1% in April to $170,200, the first month-over-month decline since about the end of 2011. On a year-over-year basis, home values gained 5.3%. The company's current forecast calls for values to rise 2.2% in the year ending April 2015, about a third of 2013's appreciation.

Values fell in April even as inventory continues to tighten, with the number of homes listed for sale on Zillow slipping 0.4% annually last month, the 4th consecutive month of decline. Conditions are most "acute" at the lower end of the market which has become the sandbox of institutional players like Silver Bay (SBY -0.1%), American Homes 4 Rent (AMH +0.3%), American Residential Properties (ARPI +0.4%), and Starwood Waypoint (SWAY +0.5%).

Rents were up 2.3% on an annual basis in April.

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Comments (11)
  • bbro
    , contributor
    Comments (11235) | Send Message
    Month to month comparisions are for the most part useless...year over year is
    better way at looking at the data...
    22 May 2014, 03:31 PM Reply Like
  • Nettligent
    , contributor
    Comments (1346) | Send Message
    These statistic from housing market with rosy numbers is always fishy and most of them were wrong.
    "Rent is up", they should encourage customers to buy more houses at current low interest rate before it is too late.
    It does not matter how they spinning the house value, nothing makes any sense in housing market for the next 5 years.


    Kids, do not get marry or buy house if you are not ready.
    22 May 2014, 07:30 PM Reply Like
  • Darren McCammon
    , contributor
    Comments (4327) | Send Message
    Ding, ding. The bell is tolling....


    Unemployment only falling because those on unemployment insurance have used it up and are no longer being counted.
    The demand was never really there, except from corporate REO to rental buyers.
    Interest rates are still remarkably low, yet where are the buyers?
    Prices are up because there's no inventory as sellers continue to "wait for there price" and banks are prevented from foreclosing.


    The housing market is anything but healthy.
    22 May 2014, 04:48 PM Reply Like
  • mobyss
    , contributor
    Comments (2640) | Send Message
    The echo boom is over. Prices were 30%+ overvalued in early 2006, 25% undervalued in early 2010, and now about 10 to 15% overvalued again. Hopefully the next oscillation only takes it to around 5% undervalued, after which point the housing market should finally settle at real valuations and not turn into a speculative bubble again (well, at least for a decade or so).


    It's been a crazy ride for someone like me who bought in 2001 and is still in the same house. I bought for $225, the house "went to" $400 in under five years, dropped to $200 four years later, and is now back to about $340. I wouldn't pay more than about $300 for it myself right now.
    22 May 2014, 04:59 PM Reply Like
  • Nettligent
    , contributor
    Comments (1346) | Send Message
    Ding, ding. The bell is tolling....We just went through a massive layoff in February 2014. As soon as life getting easier to breath, the new wave of layoff coming in summer. The good news is, it is easier to pack and move during the summer and make transition easier.


    HP just finish to cut most of its contractors during the past 60 days.
    HP had originally planned to shed 34,000 jobs as part of its corporate overhaul to "cut cost, improve productivity and profits."
    Today, HP is officially announced 16,000 more positions needed to go, scattered across business areas. HP is nice enough to give a severance packages for their long time employees.
    There will be around 50,000 HP employees to join Unemployment lines.
    22 May 2014, 07:43 PM Reply Like
  • june1234
    , contributor
    Comments (4480) | Send Message
    Declining mtg apps = fewer sales = Declining values.
    22 May 2014, 05:09 PM Reply Like
  • Please Handle Thanks
    , contributor
    Comments (4) | Send Message
    0.1% does not seem to be a statistically significant decline. I will interpret this as prices remained flat.
    22 May 2014, 05:30 PM Reply Like
  • Bio Bull
    , contributor
    Comments (252) | Send Message
    Interesting stats! Thoughts for a potential home buyer during 2014? I'll likely be in the market, but I don't absolutely need to make the move.
    22 May 2014, 06:10 PM Reply Like
  • James Bjorkman
    , contributor
    Comments (2778) | Send Message
    Time to buy, but only if you can swing it without strain and intend to stay there indefinitely. Bought a house myself in mid-2010, awesome investment so far and nice place to live. Lock in a fixed 30-year.
    22 May 2014, 08:16 PM Reply Like
  • America444
    , contributor
    Comments (4) | Send Message
    With this increasing student loan debt, students are increasingly, moving in with their parents. This is deflationary.
    22 May 2014, 09:38 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (13557) | Send Message
    The reason this is worse than it looks is that Fannie Mae and Freddie Mac have taken new initiatives to ease lending and let worse lending standards pass to buy houses and housing prices are still falling. Housing demand YoY will also look quite rotten probably because there is a rotten worm eating at the core, a socialized housing market supported by entities who don't care about risk, profitability, whether or not homeowners can afford to own the home in the long term, or losses since all losses and risk is heaped onto taxpayers of the future to clean up their mess.
    23 May 2014, 01:44 AM Reply Like
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