As the American housing sector continue to unevenly recover, prices of homes in the United States also continued to drop and eventually reached a three-year all-time-low.
Home values decreased by 3 percent in the first quarter this year, posing the biggest quarterly drop in the United States residential market since 2008.
The current average price of houses is $169,600 and it is 8.2 percent down from the same period a year ago and off almost 30 percent from their June 2006 level.
The New York housing market in particular fell by 1.6 percent to $346,600 during January to March this year, hitting their lowest level in more than seven years, according to a report by real estate tracking company Zillow. As a result, about 17 percent of New Yorkers with mortgages now owe more on their homes than what they are worth.
Nationwide, the number of single-family homes with mortgages that were underwater on their loans hit a new high of 28.4%.
For the whole US, the Zillow report predicted that the lowest point of American home prices is yet to occur and it will probably be sometime in 2012.
The drop in home prices were caused by doubtful buyers that were a result of high unemployment and the unstable housing market stability. It put downward pressure on prices which is expected to continue as foreclosures send more low-cost homes into the market, said Zillow.com chief economist Stan Humphries to Bloomberg news.
He added that the situation of the US housing market is not likely to be as worse as it was in 2008 but it could get worse than it is expected to be.