Dec. 9, 2009
ZILLOW: U.S. Home Value Losses Stabilize in 2009 with Nearly $500 Billion in Losses -- Compared to $3.6 Trillion in 2008
By David M. Kinchen
Huntingtonnews.net Real Estate Writer
Total home values in the United States fell $489 billion in the first 11 months of 2009, according to Zillow.com chief economist Stan Humphries.
Writing on the firm's blog on Tuesday, Dec. 8, 2009, Humphries said the loss in value is "A large drop, to be sure, but it marks a significant improvement from 2008, when homes lost a total of $3.6 trillion in values."
More good news, Humphries said, is that 48 of 154 markets covered by Zillow had gains in total home values. The Boston metropolitan statistical area (MSA) topped this list, gaining $23.3 billion. Last year, the Boston MSA lost $53.4 billion.
On the other end of the spectrum -- and the other coast -- the Los Angeles MSA’s housing market lost the most dollars in 2009 — $60.8 billion. As bad as that was, Humphries said, "even that was a significant improvement from 2008, when the MSA lost $345.8 billion. The Los Angeles market has actually performed quite well recently, having seen six consecutive months of monthly gains in home values as of October, but the strong negative performance earlier in the year dug the overall market a large hole early on."
Humphries: "The 2009 numbers are encouraging, but our optimism for next year is cautious. The government’s tax credits and low mortgage rates are spurring a lot of demand, but the tax credits will end after the first quarter, and mortgage rates are likely to rise at that time as well (as the Fed ramps down its purchase of mortgage-backed securities). In addition, foreclosures are likely to rise. All of these factors will put downward pressure on home prices, so the possibility of another dip in prices does exist."
Zillow.com is an online real estate database that was founded in 2005 by Rich Barton and Lloyd Frink, former Microsoft executives and founders of Expedia.
Click below for markets with the biggest gains and losses, as measured by Zillow.com. It’s important to note that these markets don’t necessarily represent those where individual home values are performing the best and worst. When figuring the total value of real estate, the number of homes in an area come into play, so big markets are more likely to have the biggest total dollar-value gains and losses, according to Zillow.com.
Markets With Biggest Gains 2009
Markets With Biggest Losses 2009
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ZILLOW: U.S. Home Value Losses Stabilize in 2009 with Nearly $500 Billion in Losses -- Compared to $3.6 Trillion in 2008
By David M. Kinchen
Huntingtonnews.net Real Estate Writer
Total home values in the United States fell $489 billion in the first 11 months of 2009, according to Zillow.com chief economist Stan Humphries.
Writing on the firm's blog on Tuesday, Dec. 8, 2009, Humphries said the loss in value is "A large drop, to be sure, but it marks a significant improvement from 2008, when homes lost a total of $3.6 trillion in values."
More good news, Humphries said, is that 48 of 154 markets covered by Zillow had gains in total home values. The Boston metropolitan statistical area (MSA) topped this list, gaining $23.3 billion. Last year, the Boston MSA lost $53.4 billion.
On the other end of the spectrum -- and the other coast -- the Los Angeles MSA’s housing market lost the most dollars in 2009 — $60.8 billion. As bad as that was, Humphries said, "even that was a significant improvement from 2008, when the MSA lost $345.8 billion. The Los Angeles market has actually performed quite well recently, having seen six consecutive months of monthly gains in home values as of October, but the strong negative performance earlier in the year dug the overall market a large hole early on."
Humphries: "The 2009 numbers are encouraging, but our optimism for next year is cautious. The government’s tax credits and low mortgage rates are spurring a lot of demand, but the tax credits will end after the first quarter, and mortgage rates are likely to rise at that time as well (as the Fed ramps down its purchase of mortgage-backed securities). In addition, foreclosures are likely to rise. All of these factors will put downward pressure on home prices, so the possibility of another dip in prices does exist."
Zillow.com is an online real estate database that was founded in 2005 by Rich Barton and Lloyd Frink, former Microsoft executives and founders of Expedia.
Click below for markets with the biggest gains and losses, as measured by Zillow.com. It’s important to note that these markets don’t necessarily represent those where individual home values are performing the best and worst. When figuring the total value of real estate, the number of homes in an area come into play, so big markets are more likely to have the biggest total dollar-value gains and losses, according to Zillow.com.
Markets With Biggest Gains 2009
Markets With Biggest Losses 2009
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Make HNN Your Homepage (IE Users Only)
