Crains Chicago published a pretty interesting story today that shows what the drop in home values have been since the peak (to Q3-2008) and what Moody's Economy.com estimates the total home value price drops will be.
Click the image for a larger image
According to Moody's:
- The United State's home prices will bottom in Q4-2009 after dropping 36%
- Miami's home prices will drop over 66% from the peak
- Phoenix home prices will drop 58% from the peak
- Las Vegas will drop 56% from the peak
- Los Angeles will drop 53% from the peak
- Washington DC will drop 38% from the peak
- New York City will drop 33% from the peak
- San Francisco will drop 27% from the peak
- Boston will drop 26% from the peak
- Chicago will drop 17% from the peak
These are big drops and mean that many many home owners will be underwater in their mortgages. This will be felt for many people who needed PMI and only put down a down payment of 5% or 10%---But in many areas (Miami, Phoenix, Vegas, California)---even conforming loans and jumbo loans that were issued in 2005, 2006 and early 2007 will be underwater.