Home values tumble $1.7 trillion in 2010

By , staff reporterDecember 9, 2010: 5:55 AM ET

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 helped 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.

"It's a testament to the nearly irresistible force of the overall market correction that government incentives can only temporarily hold back the tide, and that the market will ultimately find its natural equilibrium of supply and demand," said Zillow Chief Economist Dr. Stan Humphries.

And it may not get much better.

"Unfortunately, with foreclosures near an all-time high in late 2010 and high rates of negative equity persisting, it does not appear that the first part of 2011 will bring much relief," Humphries said.

Only 24% of the 129 markets Zillow tracked increased in total home value this year. Home values increased $10.8 billion in the Boston metropolitan statistical area (MSA), and $10.2 billion in San Diego MSA.

The areas suffering the biggest drops in home prices include New York City, which lost $103.7 billion in value and Los Angeles, where home values fell $38.6 billion.

The steep declines in home values are pushing Americans further under water every year. In the third quarter of 2010, 23.2% of single family homeowners with mortgages owed more on their mortgage than their home was worth -- up from 21.8% in 2009. 

#cnnfb_connect {background-color:#f5f5f5;width:auto;height:auto;padding:10px;clear:both;} First Published: December 9, 2010: 5:53 AM ETRight Now

Fortune's Sue Callaway says the Leaf is a smooth ride, but a lack of compatible public charging stations may give drivers range anxiety. Netflix, Google and Facebook have let private data loose -- and the results can be devastating. Total sales in November rise 0.8% , topping economists' estimates. NRF lifts its holiday sales forcast to 3.3%. 

•  

Overnight Avg Rate	Latest	Change	Last Week
30 yr fixed	4.97%		4.67%
15 yr fixed	4.26%		4.04%
5/1 ARM	3.59%		3.40%
30 yr refi	4.85%		4.55%
15 yr refi	4.12%		3.88%

Find the best auto, life, home, health rates
Enter Zip code:
Select a product: AutoHomeLifeLong-Term CareHealth
Insurance news and resources from BankRate

Rate data provided
by Bankrate.com View rates in your area
 Find personalized rates:Card typeCredit typeCard issuer

Today's featured rates:

*Rates subject to change

• Find Homes for sale
• • City, state, or zip
  • Price rangeMin$10,000$20,000$30,000$50,000$100,000$130,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$550,000$600,000$650,000$700,000$750,000$800,000$850,000$900,000$950,000$1M$1.1M$1.2M$1.25M$1.4M$1.5M$1.6M$1.7M$1.75M$1.8M$1.9M$2M$2.25M$2.5M$2.75M$3M$3.5M$4M$5M$10M$20Mto$10,000$20,000$30,000$50,000$100,000$130,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$550,000$600,000$650,000$700,000$750,000$800,000$850,000$900,000$950,000$1M$1.1M$1.2M$1.25M$1.4M$1.5M$1.6M$1.7M$1.75M$1.8M$1.9M$2M$2.25M$2.5M$2.75M$3M$3.5M$4M$5M$10M$20MMax


• Property TypeAny typeSingle-Family HomeCondoTownhomeCoopApartmentLoftTICApt/Condo/TwnhmMobile/ManufacturedFarm/RanchLot/LandMulti-Family HomeIncome/InvestmentHouseboatUnspecified
• Find a home in: | | |
• | | |

Studies show some investors are wary of investing in the stock market and are avoiding it, like people did during the Great Depression. Fortune's Sue Callaway says the Leaf is a smooth ride, but a lack of compatible public charging stations may give drivers range anxiety. CEO Howard Schultz talks about the inspiration behind the coffee company and what it will be like in 10 years. 

Markets	Last	Change	% Change
	11,477.83	49.27	0.43%
	2,627.72	2.81	0.11%
	1,241.58	1.12	0.09%
	3.45	0.17	5.24%
	1.34	-0.00	-0.07%

Data as of 4:00pm ET

Company	Price	Change	% Change
	4.68	-0.13	-2.70%
	6.28	-0.37	-5.60%
	12.38	-0.16	-1.28%
	17.65	0.03	0.17%
	35.51	-6.19	-14.84%

Data as of 3:45pm ETSponsored by var randomnumberA=Math.floor(Math.random()*2); // fortune content if (location.pathname.match('fortune')) document.write(''); else // moneymag homepage if (location.pathname.match('moneymag')) document.write(''); else // cnnmoney content if (randomnumberA==0) document.write(''); else if (randomnumberA==1) document.write('');
Sections

Apple's stock keeps climbing and several money managers say shares, despite a more than 50% rise in 2010, are still a bargain heading into 2011.

The central bank reports that the economy is still on a growth path, but leaves controversial quantitative easing policy in place.

Netflix, Google and Facebook have let private data loose -- and the results can be devastating.

'Pay czar' Kenneth Feinberg announces that claimants damaged by the BP oil spill in the Gulf Coast can get paid quickly, so long as they forfeit litigation.

Solar, wind, and other green stocks got hammered in the downturn. Now might be a great time to buy.

Please create a screen name to access this feature.

Screen name (Select one with 3-12 characters; Numbers and letters only)

Forgot password

Enter your e-mail address below and we will send you an e-mail with a link and code to reset your password.

E-mail

Password selection

E-mail

Reset code

New password

Log in & let's get started!

E-mail

Password

Remember me for two weeks

Not a member yet?

Sign up or

Screen name

Select one with 3-12 characters;
Numbers and letters only

E-mail

Make sure you typed it correctly.
You will receive an e-mail to validate your account

Password

Make it 6-10 characters, no spaces

Type what you see in the grey box

If you can't read this,
Yes, I would like to receive occasional CNNMoney member updates about new features and special offers.

CNNMoney will use the information you submit in a manner consistent with our . By clicking on "sign up" you agree with and and consent to the collection, storage and use of this information in the U.S. subject to U.S. laws and regulations. ()

For our international users, please be aware that the information you submit when registering for our services is collected in the United States of America. In addition to being subject to our Privacy Policy, the collection, storage, and use of your data will be subject to U.S. laws and regulations, which may be different from the laws and regulations of your home country. By registering for this service, you are consenting to this collection, storage, and use.

We're Sorry!

This service is temporarily unavailable. Please try again soon.

Thanks!

Please check your e-mail and click the link to confirm your membership. Then, you'll be ready to participate in all activities and conversations on our site.

  Add comment

Name:
E-Mail:
Comment:
Enter code: