U.S. Homeowners See Stabilization in 2009
December 10, 2009 - The volume of U.S. home value losses has stabilized in 2009 after suffering a detriment of several trillion dollars in the prior year. Zillow Real Estate Reports recently disclosed that in the past 11 months, U.S. homes have only lost $489 billion, a considerably smaller figure than the $3.6 trillion that was lost in 2008.
Nearly one in three of Zillow's tracked markets showed home value gains throughout 2009. Boston's MSA showed the largest growth of $23.3 billion, while Providence, Rhode Island followed with a gain of $12.4 billion.
While rates of negative equity still remain, the stabilization in home values has reduced it greatly in the third quarter. Negative equity has been one of the biggest downfalls for homeowners, leaving many unable to refinance or sell.
"Home values stabilized significantly during the second half of 2009, with the total dollar value of U.S. homes increasing since June," Zillow's chief economist, Stan Humphries explains.
The government's tax credit along with abnormally low mortgage rates has allowed most housing markets across the country to see a relatively productive summer.