NEW YORK (CNNMoney.com) -- Can't sell your home for a decent price? You're not alone.
American homes are expected to be worth $1.7 trillion less in 2010 than they were worth last year, according to a report released Thursday by real estate website Zillow.
This year's drop in home values is 63% bigger than the $1 trillion dip in 2009, and brings the total value lost since the housing market's peak in 2006 to a whopping $9 trillion.
While the homebuyer tax credithelped prop up the housing market in the second half of 2009 and the first half of 2010, home values continued their slide in the second half of the year. Almost $700 billion in value was lost in the first half of the year, compared to Zillow's estimates of $1 trillion in the second half of 2010.
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4 comments:
Sad for those of us who did not realize there was a bubble being blown up as we bought houses in 2004-2007. Were we stupid? Or were the culprits (Wallstreet and Banks) manipulating our lack of knowledge for their financial gain? Did the MSM intentionally lead us to believe there was no bubble - when they in fact knew all along the bubble was being created by the sale of CDO at inflated prices?
Now many of us are stuck in mortgages which are far greater than the actual value of our homes. If we default our credit will be ruined. If we continue to pay we lose any hope for equity in our largest financial purchase.
If you were dumb enough to pay 300,000 for that rancher, then you deserve what you get. The sad thing is that while people try to pin this on the poor, it was largely investment/vacation/rental properties that crashed.
2:35
It was everybody's property. There are a lot of people who did not have 30% equity in their homes. They now owe more than the value of the home. That means they are trapped and cannot move away in search of a job.
All across America there are people (regular people) trapped in towns gone bust. If they leave, they will certainly default on the loan and their credit will be trashed. If they stay, they cannot find employment sufficient to pay the mortgage.
There are always some people who still prosper in a bad environment. However, it is safe to say there are millions of Americans who have suddenly become a slave to the bank!
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