Zillow report: Over half of U.S. homes lose value

Over half of U.S. homes experienced a loss in value over the past year, according to Zillow. This marks the highest percentage of home value loss since 2012. Despite being a buyer’s market, high mortgage rates have deterred many potential buyers.

Nationwide, the number of home sellers exceeds the number of buyers. The West and South regions witnessed the most extensive losses during the past year. This is attributed to an increase in the availability of homes and heightened climate risks such as tornadoes and wildfires.

Notably, most major metropolitan areas in these regions experienced at least half of their homes losing value. According to Zillow’s statistics, Denver, Austin, Sacramento, Phoenix and Dallas ranked among the cities with the highest percentage of home value loss. Denver experienced the most significant decline at 91%, followed closely by Austin at 89%, Sacramento at 88%, Phoenix at 87% and Dallas also being at 87%.

Mark Stapp, the Director for Masters in Real Estate Development at ASU joined “Arizona Horizon” to break down these trends and explain more about why exactly this is happening.