Twin Cities home prices tank

Twin Cities home prices fall 9 percent during March


House price declines in the Twin Cities during March outpaced the nation, with foreclosures leading the decline.

CoreLogic's March Home Price Index (HPI) shows that home prices, including distressed sales, in the US fell for the eighth month in a row, down 7.5 percent compared to March 2010. Prices during February were down 5.8 percent compared with February 2010.

In the Twin Cities March prices fell by almost 9 percent, compared to last March, following last months 8 percent decline.

46% have negative equity in home


In the Twin Cities, 46.2 percent of single-family homeowners owe more on the mortgage than the home is worth, according to the latest report from Zillow.com. That's up from 42 percent at the end of last year and 38.7 percent a year ago.

Nationally, negative equity reached a new high with 28.4 percent of all single-family homes with mortgages underwater, up from 27 percent in the fourth quarter.

"Home value declines are currently equal to those we experienced during the darkest days of the housing recession," said Stan Humphries, Zillow's chief economist, in a statement.

The median home price fell to $159,000 in the metro area in March, down 4.8 percent in the first quarter and 15.1 percent compared to last March, according to Zillow. The declines outpaced the nation, which saw prices fall 3 percent in the quarter and 8.2 percent compared to a year ago.

The real estate research firm now predicts home prices won't hit bottom until 2012 at the earliest. Previously, Zillow had expected a bottom in home values this year. Then Zillow expects a long period of below-normal real estate appreciation.

Comment: My house ... paid for! .... now valued at 2001 level .... oh well ... not selling anyway.

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