Analysis: Home Values Fall in 84% of Markets

Global Insight, an economic forecasting and analysis firm, has reported that home values fell in 84% of the nation's housing markets during the first quarter. The company said home values declined nationally for the third consecutive quarter, dropping at a 6.7% annualized rate. Of the 330 markets covered by Global Insight's housing analysis, 262 saw values decline in the first quarter. Markets in California, Florida, and Michigan saw the steepest losses in the analysis. The company said a slowdown in the sale of expensive homes, the sale of a large number of foreclosed homes at a discount, and tighter mortgage underwriting standards have all contributed to the national price decline. On the bright side, Global Insight's James Diffley, a group managing director, said that fewer markets are now overvalued. "The large price adjustments we have seen are precisely what was required before we could begin to talk of recovery," he said. The company can be found online at http://www.globalinsight.com.