Categorized | Residential

Residential Property Market Lost Hundreds of Billions of Dollars in US

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The residential real estate market in the United States continued to suffer significant losses in 2011. The most recent data from a report by Zillow indicates that the United States housing market saw home values decline by roughly seven hundred billion dollars in the last year.

Although that number is substantial, it actually pales in comparison to the loss experience in 2010, which totaled more than one trillion dollars. The majority of the decline experienced during this past year took place during the first half of the year, as the market has improved overall since July. The total loss is likely to drop again next year before values finally gain in 2013.

The overall loss was fairly widespread across the country, as there wasn’t a particular area that accounted for the majority of the decline. Only nine markets posted gains during 2011. While many would assume that Miami would have been one of the top two markets due to its international appeal, the largest value growth was actually experienced in New Orleans and Pittsburgh. Both areas saw values increase by more than two and a half billion dollars.

The areas with the most significant losses in 2011 were Los Angeles, New York, and Chicago. All three areas lost more than forty billion dollars in value, with Los Angeles seeing a drop of slightly more than seventy-five billion dollars.

The good news for the real estate industry is that, while home values will likely decline again in 2012, the slowdown of the decline was not due to quick fixes such as tax credits, but rather due to organic growth in various areas around the country.

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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