U.S. homes lost $489 billion in value during the first 11 months of 2009. That’s significantly less than the $3.6 trillion lost during 2008 and evidence that home values are stabilizing, says Zillow.com, online real estate research firm.
Properties in 48 of the 154 markets tracked by Zillow rose in value this year, but Zillow’s Chief Economist Stan Humphries believes prices could decline again in 2010.
“We believe that demand will come under downward pressure as mortgage rates creep back up after the first quarter and that housing supply will experience upward pressure as the volume of foreclosures continues to remain high. Both these factors will challenge the recent stabilization of home prices,” Humphries said in a statement.
Areas where home prices rose the most in 2009 were:
- Denver, Colo.
- Atlanta, Ga.
- Rochester, N.Y.
Areas where homes continued to lose the most value:
- Los Angeles
- New York
- Miami-Fort Lauderdale
Source: Zillow.com | December 9, 2009