Zillow Reports U.S. Home Values to Drop $1.7T in Value for 2010 (XHB)
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According to real estate tracker Zillow, home values in the U.S. will lost more than $1.7 trillion in value by the end of 2010. The number is a staggering 63% more than the $1 trillion lost in 2009.
Zillow Real Estate Market Reports also said that, from the peak in 2006, total value lost on all U.S. homes has topped $9 trillion, of which they compare that the entire war in Iraq from 2001 through the end of September 2010 has only cost $750.8 billion by comparison.
Most of the losses will come in H210, as only $680 billion in value was lost for the first half, according to Zillow.
Of the 129 markets tracked, only one-quarter (31 markets) reported a gain in values through 2010.
Commenting on the results, Zillow Chief Economist Dr. Stan Humphries said, "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. It's a testament to the nearly irresistible force of the overall market correction that government incentives can only temporarily hold back the tide...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."
The SPDR S&P Homebuilders (NYSE: XHB) is up 0.2% in late trading today.
Zillow Real Estate Market Reports also said that, from the peak in 2006, total value lost on all U.S. homes has topped $9 trillion, of which they compare that the entire war in Iraq from 2001 through the end of September 2010 has only cost $750.8 billion by comparison.
Most of the losses will come in H210, as only $680 billion in value was lost for the first half, according to Zillow.
Of the 129 markets tracked, only one-quarter (31 markets) reported a gain in values through 2010.
Commenting on the results, Zillow Chief Economist Dr. Stan Humphries said, "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. It's a testament to the nearly irresistible force of the overall market correction that government incentives can only temporarily hold back the tide...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."
The SPDR S&P Homebuilders (NYSE: XHB) is up 0.2% in late trading today.
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