{"id":398384,"date":"2025-11-23T04:36:19","date_gmt":"2025-11-23T04:36:19","guid":{"rendered":"https:\/\/www.europesays.com\/us\/398384\/"},"modified":"2025-11-23T04:36:19","modified_gmt":"2025-11-23T04:36:19","slug":"more-than-half-of-u-s-homes-have-dropped-in-value-over-the-last-year","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/398384\/","title":{"rendered":"More than half of U.S. homes have dropped in value over the last year"},"content":{"rendered":"

The share of U.S. homes that have lost value in the past year is the highest since the aftermath of the Great Recession, according to Zillow<\/a>.<\/p>\n

In October, 53% of homes saw their \u201cZestimates\u201d decline, the most since 2012 and up from just 16% a year earlier. Losses were\u00a0most widespread in the West and South.<\/p>\n

In fact, those regions have housing markets where nearly all homes declined in value over the last year. Denver topped the list with 91%, followed by Austin (89%), Sacramento (88%), Phoenix (87%) and Dallas (87%).<\/p>\n

The Northeast and Midwest, by contrast, have largely avoided such losses, but declines are spreading to more homes in all metros, Zillow<\/a> said.<\/p>\n

In addition, most homes also dropped from their peak valuations, with the average drawdown hitting 9.7%. While that has soared from 3.5% in the spring of 2022, it\u2019s still well below the 27% average drawdown in early 2012.<\/p>\n

To be sure, lower home values are just losses on paper and aren\u2019t realized by homeowners unless actual sale prices undercut their initial purchase prices.<\/p>\n

By that score, homeowners are still ahead as Zillow data shows that values are up a median 67% since the last sale, and just 4.1% of homes have lost value since their last sale.<\/p>\n

\u201cHomeowners may feel rattled when they see their Zestimate drop, and it\u2019s more common in today\u2019s cooler market environment than in recent years. But relatively few are selling at a loss,\u201d Treh Manhertz, senior economic researcher at Zillow, said in a statement<\/a>. \u201cHome values surged over the past six years, and the vast majority of homeowners still have significant equity. What we\u2019re seeing now is a normalization, not a crash.\u201d<\/p>\n

\"\"<\/p>\n

Zillow<\/p>\n

The lower values come as the housing market has been frozen for much of the past three years after rate hikes from the Federal Reserve in 2022 and 2023 sent borrowing costs higher, discouraging homeowners from giving up their existing ultra-low mortgage rates.<\/p>\n

But the dearth of new supply kept home prices high, shutting out many would-be homebuyers who were also balking at elevated mortgage rates.<\/p>\n

With demand weak, the housing market has been shifting away from sellers and toward buyers. The pendulum has swung so far the other way that delistings soared<\/a> this year as sellers become fed up with offers coming in below asking prices and just take their homes off the market.<\/p>\n

But the National Association of Realtors sees a turnaround coming next year. NAR Chief Economist\u00a0Lawrence Yun\u00a0predicted earlier this month<\/a> existing-home sales will jump 14% in 2026 after three years of stagnation, with new-home sales rising 5%. Those sales will support a 4% uptick in home prices.<\/p>\n

\u201cNext year is really the year that we will see a measurable increase in sales,\u201d\u00a0Yun said at a conference on Nov. 14. \u201cHome prices nationwide are in no danger of declining.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"The share of U.S. homes that have lost value in the past year is the highest since the…\n","protected":false},"author":3,"featured_media":398385,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[64,79,13811,7065,44068,67,132,68],"class_list":{"0":"post-398384","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-home-prices","11":"tag-housing","12":"tag-housing-prices","13":"tag-united-states","14":"tag-unitedstates","15":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115597160828836507","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/398384","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=398384"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/398384\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/398385"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=398384"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=398384"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=398384"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}