The Zillow Home Value Index declined 5.1 percent from October 2010, to $147,900, and home values fell 23.7 percent from their peak in May 2007.
"Potential buyers remain on the sidelines or doubled up in other households, despite record high housing affordability and historically low mortgage rates," said Dr. Stan Humphries, Zillow chief economist. "This crisis of consumer confidence along with high rates of negative equity, are the biggest factors hindering a housing recovery. However, I'm encouraged by the positive, albeit slow, progress in working down the unemployment rate, which should help to improve consumers' appetites for buying homes."
Homes values in 95 of the 156 metropolitan areas that Zillow covers depreciated, while 39 metros reported monthly home value increases and 22 remained consistent with the previous month's numbers.
Despite the lower home values, the foreclosure liquidation rate continued falling October. According to the statistics, 8.1 out of every 10,000 homes in the country were liquidated, which is down from the all-time high that was posted in October 2010, of 10.7 out of every 10,000.
Home values in some persistently troubled market increased, as Detroit and Phoenix both saw monthly gains of 0.2 percent and 1 percent, respectively.
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