Home values have dropped 8.4% year over year since 2007. That amounts to homeowners collectively losing over $2 trillion in value.
Some 11.7 million Americans are now "underwater" owing more on their mortgages than their home is worth. Most of the subprime loans that will fail, have failed. But there are still option ARM's that are expected to continue an increasing failure rate and the so-called 'liar loans' where incomes were not verified are expected to continue failing.
While the decline is beginning to slow, there is no bottom in sight. The worst performing market is in Stockton, Ca where housing prices have dropped more than 32%.
A few cities have registered gains over the past year with Jacksonville, NC leading the way with home values rising 4.9% year over year.