A new data report from Zillow (NASDAQ: Z, ZG) has determined that 53% of all US homes have lost value since last year, marking the largest share since 2012.
However, the news isn’t entirely bad. Zillow also noted most homeowners have seen their home values rise substantially in the time they’ve owned them, with 67% growth at the median, while only 4% of homes have lost value since they were last sold, a smaller share than before the pandemic.
Among the fast-growing and supply-constrained metros where home values were rising much faster since last sale were Buffalo (108%), San Jose (97%), Providence (95%), Columbus (90%) and San Diego (88%). Zillow noted a contributing factor was having owners in those markets remaining in their homes longer than average.
“Homeowners may feel rattled when they see their Zestimate drop, and it’s more common in today’s cooler market environment than in recent years. But relatively few are selling at a loss,” said Treh Manhertz, senior economic researcher at Zillow. “Home values surged over the past six years, and the vast majority of homeowners still have significant equity. What we’re seeing now is a normalization, not a crash.”
