More than half of U.S. homes have dropped in value over the last year - and nearly all houses in these cities have seen losses | Fortune

"In October, 53% of homes saw their "Zestimates" decline, the most since 2012 and up from just 16% a year earlier. Losses were most widespread in the West and South. In fact, those regions have housing markets where nearly all homes declined in value over the last year. Denver topped the list with 91%, followed by Austin (89%), Sacramento (88%), Phoenix (87%) and Dallas (87%)."

""Homeowners may feel rattled when they see their Zestimate drop, and it's more common in today's cooler market environment than in recent years. But relatively few are selling at a loss," Treh Manhertz, senior economic researcher at Zillow, said in a statement. "Home values surged over the past six years, and the vast majority of homeowners still have significant equity. What we're seeing now is a normalization, not a crash.""

More than half of U.S. homes declined in value year-over-year in October, with 53% showing lower Zestimates compared with 16% a year earlier. Declines concentrated in the West and South, with Denver (91%), Austin (89%), Sacramento (88%), Phoenix (87%) and Dallas (87%) among the hardest-hit metros. The Northeast and Midwest largely avoided widespread losses, though declines are spreading. Average drawdown from peak values reached 9.7%, up from 3.5% in spring 2022 but well below 2012 peaks. Median values remain 67% above last sale prices and only 4.1% of homes have lost value since their last sale. Rate hikes and low inventory contributed to the market cooling while most homeowners retain substantial equity.

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