More homeowners say their homes depreciated: survey

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Thirty-three percent of homeowners reported that their home had lost value in February, compared with 16 percent in February 2007 and well above the 24 percent peak recorded in 1992.

NEW YORK (Reuters) - A record number of homeowners thought their homes decreased in value in February, according to a Reuters/University of Michigan survey published on Friday.

Thirty-three percent of homeowners reported that their home had lost value in February, compared with 16 percent in February 2007 and well above the 24 percent peak recorded in 1992.

The recent survey showed the proportion of homeowners who reported falling home prices was greater than the proportion that reported gains for the first time.

Just 25 percent reported gains in their home's value, down from 48 percent in February 2007 and the peak of 76 percent in mid-2005.

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When asked about prospects for the year ahead, 27 percent of all home owners in February anticipated additional declines in home prices, up from 21 percent in January and 12 percent in March 2007. Those anticipating gains in home values, in contrast, fell to just 21 percent in February, compared with 41 percent in March 2007.

The declines in home values were most frequently reported by residents of the West, with 45 percent reporting that their home had lost value in the past year. That was more than twice the 21 percent who reported recent gains in their home's value.

In sharp contrast, 36 percent of homeowners in the South said their home had appreciated in value, compared with 22 percent who reported declines during the past year.

"The most frequent and the largest percentage declines were reported by homeowners whose homes were valued in the top third of the distribution," the survey said.

Among owners of the most expensive homes, 44 percent reported declines in the past year, nearly three times as frequent as declines reported among owners of the least expensive homes. Those who owned the most expensive homes were more prone to expect additional declines than gains in the year ahead, at 32 percent versus 19 percent.

Overall, owners of the most expensive homes anticipated a decline of 1.5 percent during 2008, compared with an expected gain of 0.5 percent among owners of the least expensive homes. The larger decline in home values among upper-income households has been responsible for the steeper declines in confidence in their current and future economic prospects recorded in February.

Declines in home prices were expected to remain highly concentrated in the same locations that experienced declines in the past.

(Reporting by Julie Haviv; Editing by Dan Grebler)