Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Housing News

Total house values plummet $9 trillion in just four years

This week, Zillow is reporting that this year’s dip in home values is 63% bigger than the $1 trillion dip in 2009, with homes expected to be worth an accumulative $1.7 trillion less this year than last year. Zillow research reveals the total value lost since the residential real estate boom in 2006 to be a staggering $9 trillion.

The homebuyer tax incentives that ended this spring are credited as being the crutch that housing used to avoid further crashing.

“It’s a testament to the nearly irresistible force of the overall market correction that government incentives can only temporarily hold back the tide, and that the market will ultimately find its natural equilibrium of supply and demand,” said Zillow Chief Economist Dr. Stan Humphries.

Economists are not pointing to a rapid recovery with housing values and S&P Case-Shiller reports confirm Zillow’s implication that values are in the dumps.

“Unfortunately, with foreclosures near an all-time high in late 2010 and high rates of negative equity persisting, it does not appear that the first part of 2011 will bring much relief,” said Humphries.

Advertisement. Scroll to continue reading.

Zillow’s tracking reveals that values didn’t fall everywhere- Boston experienced a $10.8 million uptick while San Diego values rose $10.2 billion. A total of 24% of the 129 markets Zillow tracked rose in accumulative home values.

New York City lost an astounding $103.7 billion in value while Los Angeles dipped $38.6 billion making them two of the most overvalued MSAs in America.

Homeowners are selling for less and values are dropping as homeowners struggle to stay in their homes. 2011 looks to be a continued challenge and while the tax credits of 2009-2010 acted as a stimulant and were certainly welcome, it does not appear there is a stimulant on the horizon outside of the market naturally correcting over the next several years.

Advertisement. Scroll to continue reading.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

25 Comments

25 Comments

  1. Blake Pierson

    December 10, 2010 at 1:57 pm

    Tara – thanks for the article! Always think it’s interesting slicing the number (or time horizons) in different ways. For instance, see this blog post by Homeboodle: blog.homeboodle.com/2010/12/09/despite-crash-home-prices-exit-2000s-way-up/. If you look at the entire decade of the 2000s, home prices increased quite significantly, even despite the crash. Home prices also outperformed the S&P 500. Of course it’s always a long way down from the height of any boom, and if you happened to buy during the peak of the housing boom you are no doubt hurting, especially if you’re in a position where you have to sell at a loss. If you are in the position to buy, however, several arguments can be made that there’s never been a better time (see: blog.homeboodle.com/2010/12/08/the-american-dream-on-sale/). Thanks again!

  2. Matt Thomson

    December 10, 2010 at 4:12 pm

    Any statistics on how much they increased in the previous 4 years? I can be real proud of myself for losing 50lbs in a year, but really that just means that I gained 50lbs in the first place.

  3. FlatFeeRealty.com

    December 11, 2010 at 8:20 am

    Thanks for the great depressing news! Uggggg!!!!

  4. Agent for Movoto

    December 13, 2010 at 1:19 pm

    yup, really depressing news. let’s just let the worst be over already, please?

Leave a Reply

Your email address will not be published.

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Housing News

After the housing market completely crashed, many of us remain braced for the next shoe to fall, but should we be freaked out or...

Housing News

(Housing News) According to the National Association of Realtors, pending home sales have improved, calling the gain inevitable.

Economic News

2011 NAR convention This morning at the National Association of Realtors (NAR) annual conference, the Economic Issues and Residential Real Estate Trends Forum was...

Economic News

New home sales up Sales of new single family homes improved in September, rising 5.7 percent after falling slightly in August, according to the...

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.