home for saleU.S. homes will lose a total of $1.7 trillion in value in 2010, according to real estate site Zillow.com.

The value lost this year will be 63% more than in 2009, and will take the total value lost since June 2006 to more than $9 trillion, Zillow said on its blog.

"Since the peak of home values in June 2006, more than $9 trillion in values has come out of the housing market," Zillow said. "As a comparison, that's more than the cost of 12 wars in Iraq, according to a study by the Congressional Research Service."

Home values have been hammered by the glut of foreclosures, with lenders seizing millions of houses to place them on the market for rock-bottom prices.

Attorneys general in all 50 states are investigating allegations that lenders used flawed documentation to seize homes.

The national median home value fell 5% in the year to October, Zillow said.

Los Angeles, Calif., had the largest total decline in values, with home values expected to fall $676.6 billion in 2010. The smallest decline of those listed by Zillow was in Denver, Colo., where value fell by $29.8 billion.

"If a homeowner wants to sell or refinance, the current value of their property becomes more important," Zillow said. "In the case of negative equity, all bets are off."

The slump will likely continue in 2011, as the economy remains sluggish. It could take years before prices take off again.
"Thanks to high rates of foreclosure and negative equity, it does not appear that the first half of 2011 will bring much relief," Zillow said. "The hope is that the market will reach a bottom sometime next year, and that average rates of appreciation will return sometime in the next three to five years."

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wurkinman1

hey Obama...theres your plan to get the homeless off the streets....now they can use their government assistance to purchase MY home....

December 13 2010 at 10:35 PM Report abuse rate up rate down Reply
kv37

A housing recovery could take much longer than they think. Who is going to buy all of these houses built for the baby boom generation. Boomers are starting to move on to retirement places, assisted living and nursing homes.

December 09 2010 at 4:59 PM Report abuse rate up rate down Reply
KWA1000

THE RUINOUS DROP IN HOUSING PRICES AND THE DRAMATIC RISE IN FORECLOSURES IS THE END RESULT OF A CONSPIRACY, ROBBERY, AND TRANSFER OF WEALTH SO GREAT THAT IT MAKES THE GREAT DEPRESSION, THE AGE OF THE ROBBER BARONS, THE AGE OF COLONIALISM, THE AGE OF EUROPEAN ROYALTY, THE AGE OF FEUDALISM, AND THE SACK OF ROME ALL PALE INTO INSIGNIFICANCE. IN THE END, THE CHICKENS CAME HOME TO ROOST FOR THE PERPETRATORS OF THESE SYSTEMS AND THOSE WHO BENEFITTED FROM THEM AND THEY GOT THEIR COMEUPPANCE. THIS IS BOUND TO BE THE END RESULT IN THIS CASE AS WELL, AND WHEN IT COMES, IT WILL MAKE THE AMERICAN REVOLUTION, THE FRENCH REVOLUTION, AND THE RUSSIAN REVOLUTION, LOOK LIKE A NICE DAY IN THE PARK.

December 09 2010 at 4:47 PM Report abuse rate up rate down Reply
shelleyxjr22

Its going to be several years before the housing market even starts to rebound the way things are going. I'd say to anyone considering selling their home at the this time. Hang onto your current home, unless its mandatory that you put it up for sale. As you better be fully prepared to take a big financial loss by the time all is said and done. Commission and attorney's fees paid, and papers all signed. That's assuming your potential buyer can even get the mortgage to buy your home after their lender/bank gets done conducting their "property" appraisal, and the value "they" assess your home is worth.

December 09 2010 at 1:44 PM Report abuse +1 rate up rate down Reply
ajallenky

Housing will have problems for MANY years - and Gov't intervention will only extend that period of years - until the market comes into equilibrium again and the Gov't stops giving loans to those that can't afford them homeowners will continue to suffer. Too bad, just supply and demand - the age old market place price equalizer

December 09 2010 at 9:43 AM Report abuse rate up rate down Reply
1 reply to ajallenky's comment
KWA1000

Bull --- the market "will come into equilibrium again" only when the Wall Street wise guys who planned and executed this Ponzi scheme are made to pay for their financial crimes. Banks and mortgage brokers would never have made these loans had they not been egged on by by Wall Street investment firms that they would buy the crap from them so they copuld then slice and dice it, package it, perfume it, camoflage it, wrap it in a nice bow, , and then sell it to unsuspecting investors like teacher's unions in Sandinavia.

December 09 2010 at 4:57 PM Report abuse rate up rate down Reply
chrispnet

I would like to see the corresponding increase figures from 2003 to 2006. When the price of real estate was escalating at an unreasonable pace during those three years, no one was panicking. In general, I think the decline in the value of real estate is good for the future. If you are one of the speculators that are stuck...I am sorry for you, but that is the downside of speculation. It is not widely reported, but about half of all foreclosures during this downturn are investment property, not owner occupied property. These so-called investors drove the price of real estate higher than was sustainable, and are also the ones walking on their obligations.

December 09 2010 at 8:53 AM Report abuse +3 rate up rate down Reply