About Zillow estimates that US housing values experienced substantial gains earlier in the year, they have dropped approximately $1.7 trillion this year. The drop is 63% greater that the $1.0 trillion drop in 2009. Zillow further estimates that US housing has lost more that $9 trillion since the peak in 2006. Some of the gains early in the year were due to the tax credit and are no longer available.
Even though this is the nationwide averages, some areas have fared better, or worse than other areas. For example, Boston and San Diego have seen a price increase this year. I do not have the statistics for Reno or Nevada at this time. Also different market segments tend to move at different times.
The Reno economy has been extremely hard hit. Jobs are scarce. No matter what the government would want you to believe. Foreclosures and short sales are pervasive. Many over-encumbered homeowners are simply walking away. The homeowners that would normally want to upgrade have little or no equity remaining and can’t move.
Zillow thinks that we will finally hit bottom sometime in 2011 and that it may take 3 to 5 years before we see normal appreciation again.
Read the rest here.