US foreclosures falling, index shows

Foreclosure numbers in the US are beginning to fall indicating that the bottom of the market is close, the latest real estate index by Zillow has suggested.

In total, 0.09 per cent of homes in the country faced foreclosure in December, the firm explained, down from 0.12 per cent in October when foreclosure liquidations peaked.

The Zillow Home Value Index also found that values declined 5.9 per cent year-on-year in the fourth quarter to $175,200.

Home values have now fallen 27 per cent since they peaked in June 2006, those looking to buy homes in the US may be interested to learn.

"While the tax credits did not hurt the housing market, they did delay its bottom by interrupting the housing correction that was taking place," said Stan Humphries, Zillow chief economist.

"Home value trends in the fourth quarter remained grim, but the good news is that these declines, while painful in the short term, mean we’re getting closer to the bottom."

Like this? Then share with your friends and colleagues!