Online real estate database Zillow reports that home values fell 3 percent in the first quarter of 2011-the worst decline since the peak of the housing recession in 2008. The cumulative decline in home values since the market peak is now 29.5 percent, Zillow reports. Only one metro area, Honolulu, showed a positive year-over-year change. A record number of homes-37.7 percent-sold in March were sold at a loss.
Due to the strong depreciation in the first quarter, Zillow revised its forecast for the total home value decline nationally in 2011 from 5-7 percent to 7-9 percent and is now forecasting that the bottom will be in 2012 at the earliest.
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