Survey: Recovery may not arrive until 2013 or beyond
BY INMAN NEWS, THURSDAY, DECEMBER 9, 2010.
This year has not been kind to U.S. home values. Homes are expected to lose $1.7 trillion in value this year -- 63 percent more than they lost during 2009, according to a report released today by online real estate site Zillow.
The second half of 2010 will account for the bulk of the loss, $1 trillion, compared with $680 billion from January to June, the company reported.
"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," said Stan Humphries, Zillow's chief economist, in a statement.
"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."
Since the market peaked in June 2006, homes have lost an estimated $9 trillion in value, falling to a total estimated value of $22.7 trillion, Zillow said. By comparison, the war in Iraq had cost a total of $751 billion by the end of fiscal year 2010, according to a September report by the Congressional Research Service -- making the loss in home values the cost equivalent of 12 Iraq wars.
Only 31 of the 129 markets Zillow tracked showed gains in home values this year, the report said. Among the 20 largest markets, only three saw an increase: Boston ($10.8 billion); Riverside, Calif. ($7.3 billion); and San Diego ($10.2 billion). In total dollar amounts, New York City has lost the most in the past year ($103.7 billion), followed by Chicago ($48 billion) and Los Angeles ($38.6 billion).
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