The U.S. housing market is expected to lose $1.7 trillion in market value in 2010, according to estimates by Zillow.com, a real estate research firm.
According to Chicago-based Zillow, U.S. home prices have lost $9 trillion in total value since real estate prices peaked in June 2006, Zillow said on Thursday.
“Despite a strong start to 2010, by the end of the year homes lost more of their value in 2010 than they did in 2009,” said Zillow chief economist Stan Humphries in a statement.
“Government interventions like the homebuyer tax credit helped buoy the market during the second half of 2009 and the first half of 2010, but we saw a renewed downturn in the last half of this year,” Humphries said.
Home values took a nosedive especially toward the end of the year. Zillow estimated that in the first half of 2010, the housing market lost just under $700 billion in value. But during the June to December period, housing prices declined enough to cause a $1 trillion loss.
“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,” he said.
Zillow said that 31 out of 129 markets the company tracks saw improvements in housing prices. San Diego and Boston, Mass., were among the gainers.
According to Chicago-based Zillow, U.S. home prices have lost $9 trillion in total value since real estate prices peaked in June 2006, Zillow said on Thursday.
“Despite a strong start to 2010, by the end of the year homes lost more of their value in 2010 than they did in 2009,” said Zillow chief economist Stan Humphries in a statement.
“Government interventions like the homebuyer tax credit helped buoy the market during the second half of 2009 and the first half of 2010, but we saw a renewed downturn in the last half of this year,” Humphries said.
Home values took a nosedive especially toward the end of the year. Zillow estimated that in the first half of 2010, the housing market lost just under $700 billion in value. But during the June to December period, housing prices declined enough to cause a $1 trillion loss.
“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,” he said.
Zillow said that 31 out of 129 markets the company tracks saw improvements in housing prices. San Diego and Boston, Mass., were among the gainers.
