The S&P/Case-Shiller index of property values indicated a decline of 3.6 percent in September compared to the same month one year ago. The continued drop in the index which measure property values in 20 cities, suggests that many homeowners find themselves holding mortgages worth more than the current value of their homes.
With unemployment continuing to hold at about 9 percent and a growing inventory of distressed properties, the outlook for the housing sector remains weak.
“Housing probably wonÃ¢â‚¬â„¢t go anywhere for the next couple of years,” Ken Mayland, president of ClearView Economics LLC in Pepper Pike, Ohio, said before the report. “WeÃ¢â‚¬â„¢re just mired in this swamp with a huge overhang of distressed properties that prevents the market from gaining any traction.”
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