REAL ESTATE NEWS...More than a Quarter of U.S. Homes Lost Value in the Last Year

As the housing market levels off, some markets are struggling to leave the recession behind

- In Baltimore, 48.1 percent of homes decreased in value over the past year.

- Hot markets in the West had fewer homes losing value in August than they did a year ago.

- The U.S. Zillow Home Value Index grew 3.3 percent to $180,800.

Sep 22, 2015

SEATTLE, Sept. 22, 2015 /PRNewswire/ -- More than a quarter of homes across the country lost value over the past year, despite the ongoing housing market recovery, according to the Zillow® August Real Estate Market Report[i]. Some markets have already surpassed home values reached at the height of the housing bubble, while other markets are struggling to leave the recession behind.

Nationally, homes appreciated 3.3 percent from a year ago, rising to a Zillow Home Value Index[ii] of $180,800. The national growth rate has leveled off over the past five months, suggesting the housing recovery is ending and the market is returning to normal. However, 27.9 percent of homes lost value over the past year. Before the housing market crashed, an average of 21.2 percent of homes were losing value. In December 2008, 81.6 percent of homes lost value, the highest amount during the recession.

Markets on the East Coast and in the Midwest had the highest share of homes that lost value. A staggering 48.1 percent of homes in Baltimore decreased in value over the past year. Philadelphia (43.4 percent) andWashington, DC (41.2 percent) also had large shares of homes losing value.

Conversely, few homes lost value in hot markets like Denver, Dallas, San Jose, and San Francisco, which all saw double-digit home value growth over the past year. Less than five percent of homes in Denver (1.5 percent) andDallas (4 percent) were worth less in August 2015 than they were a year ago.

"We're not going in reverse, but we are hitting the brakes a bit in some markets," said Zillow Chief Economist Dr.Svenja Gudell. "It's easy to say the recession is over when a third of the biggest markets are more expensive now than ever before, but we're still seeing a number of homes losing value. The reality is there are still areas lagging behind in the recovery."

Renters looking to become homeowners may find more opportunities in slower markets like Philadelphia. According to the January 2015 Zillow Housing Confidence Index[iii], when home values there were growing at 2.8 percent annually, eight percent of renters in the area said they planned to buy within a year. This jumped to 18 percent in the most recent survey, when home value growth was nearly flat at 0.3 percent.

Rents are still growing faster than home values. The Zillow Rent Index[iv] rose 3.8 percent on an annual basis to$1,381, giving potential buyers another reason to consider entering the market.

Metro Name	August 2015 Zillow Home Value Index (ZHVI)	Year-over-Year Percent Change in ZHVI	Percent of Homes Decreasing in Value
United States	$        180,800	3.3%	27.9%
New York-Northern New Jersey	$        384,100	1.3%	38.6%
Los Angeles, CA	$        544,300	4.1%	13.6%
Chicago, IL	$        191,200	2.5%	35.8%
Dallas-Fort Worth, TX	$        168,000	13.8%	4.0%
Philadelphia, PA	$        202,200	0.3%	43.4%
Houston, TX	$        162,000	8.1%	N/A
Washington, DC	$        358,000	-0.3%	41.2%
Miami-Fort Lauderdale, FL	$        222,800	9.8%	16.3%
Atlanta, GA	$        158,600	5.7%	22.4%
Boston, MA	$        376,000	4.2%	13.5%
San Francisco, CA	$        764,600	11.8%	5.2%
Detroit, MI	$        118,700	5.9%	26.7%
Riverside, CA	$        290,200	5.0%	25.7%
Phoenix, AZ	$        206,400	6.3%	16.1%
Seattle, WA	$        355,400	7.2%	7.0%
Minneapolis-St Paul, MN	$        212,500	2.4%	25.0%
San Diego, CA	$        483,800	5.6%	12.7%
St. Louis, MO	$        136,300	5.9%	27.3%
Tampa, FL	$        153,600	6.4%	18.6%
Baltimore, MD	$        240,400	-0.9%	48.1%
Denver, CO	$        308,600	16.3%	1.5%
Pittsburgh, PA	$        125,200	1.9%	37.1%
Portland, OR	$        295,600	9.1%	7.2%
Sacramento, CA	$        341,000	5.9%	18.4%
San Antonio, TX	$        150,500	4.4%	N/A
Orlando, FL	$        174,100	4.8%	18.1%
Cincinnati, OH	$        137,100	1.3%	32.6%
Cleveland, OH	$        122,900	2.2%	31.5%
Kansas City, MO	$        143,500	4.7%	N/A
Las Vegas, NV	$        190,700	7.0%	16.2%
San Jose, CA	$        904,000	12.5%	6.5%
Columbus, OH	$        150,500	5.2%	23.6%
Charlotte, NC	$        162,400	4.6%	20.0%
Indianapolis, IN	$        132,800	3.6%	N/A
Austin, TX	$        235,000	8.6%	N/A

Zillow

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