Recent data shows that home prices have made a record year-over-year drop, declining by a whopping 15.3%. This is bad news for HELOC borrowers who risk home equity line reductions from lenders.

CNN Money reports:

“The overall price declines reported by Case-Shiller have been remarkably consistent over the past two years. Prices on the 20-city index have dropped for 21 straight months, since July 2006. The 10-city index has fallen every month since June 2006.

What’s more, recent drops have been particularly steep. The 20-city index fell 2.2% in March, 2.6% in February and 2.3% in January, and is now it down another 1.4%.

“In the bubble markets, we continue to see very rapid rates of price declines,” said Baker. “If anything, it may be accelerating.”

Fortunately, not all borrowers are affected by these declines. In a very few areas, property values are actually increasing.

See Also:

The HELOC Freeze Continues

Understanding the Mortgage Crisis and the HELOC Freeze

Tags | Heloc, heloc crisis, home equity, home equity line of credit, mortgage crisis