Over half (53%) of U.S. homes lost value in the past year, according to Zillow.
Why it matters: That's the most since 2012 — but the vast majority of homeowners still "have plenty to feel good about," the real estate site reports.
State of play: Many homeowners bought before prices surged in the early 2020s. As of October, the median home value had jumped roughly 67% since the property was last sold.
- Just 4% lost value in that time, around 8.5 years for the typical homeowner.
- Losses between sales are up slightly from a year ago (2%) but lower than pre-pandemic levels (11%).
The big picture: It's a homebuyer's market right now, if you can afford it. Persistently high mortgage rates and prices have sidelined many.
- Nationwide, home sellers outnumber buyers by a record 37%, Redfin estimates.
The West and South, where there are more available homes and greater climate risks, saw the most widespread losses over the past year.
- Most major metros in those regions saw at least half of homes lose value, led by Denver (91%), Austin, Texas (89%) Sacramento, California (88%), Phoenix (87%) and Dallas (87%), Zillow found.
- Meanwhile, only three major metros in the Northeast and Midwest saw most homes lose value: Minneapolis (55%), Des Moines, Iowa (54%) and Scranton, Pennsylvania (52%).
Reality check: There's a difference between taking a loss and being "underwater," or owing more money to your lender than the house is worth.
- Far fewer homes are underwater today compared to 2019, Zillow chief economist Mischa Fisher says.
The bottom line: "While fluctuations in home values can distress watchful owners, the vast majority are sitting on large equity gains that they can take advantage of when they sell," Fisher tells Axios.
