U.S. homes set to lose over $2 trillion in value during 2008

According to analysis of recent Zillow Real Estate Market Reports, home values declined 8.4% year-over-year during the first three quarters of this year, compared to the same period in 2007.

U.S. home values lost $1.9 trillion from the first of the year through the end of the third quarter, and were likely to fall further in the fourth quarter, leaving approximately 11.7 million American households owing more on their mortgage than their homes are worth. One in seven of all homeowners (14.3%) were underwater by the end of the third quarter.