The US housing market may be recovering, but more than a quarter of homes were worth less last month than they were in August 2014, according to Zillow, the US-based real estate database.
“We’re not going in reverse, but we are hitting the brakes a bit in some markets,” said Svenja Gudell, Zillow’s chief economist, in a statement.
Of all American homes, 27.9 percent lost value in August compared to the same time last year, the report released yesterday found.
The report is based off of the Zillow Home Value Index, a seasonally adjusted estimate of the median value of all home types in a certain geographic area.
The east coast and Midwest markets had the highest share of homes that lost value. For instance, nearly half of the homes in Baltimore have dropped in value from August 2014 to August 2015 to a Zillow Home Value Index of $240,000. That marked a 0.9 percent index decrease.
Meanwhile, 41.2 percent of homes in Washington, DC, suffered some loss in value over the year ending in August. The New York and northern New Jersey market was similarly impacted. Some 38.6 percent of homes there decreased in value during that period.
On the other end of the spectrum, only 1.5 percent of Denver homes depreciated in value, the lowest rate of all markets tracked.
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The Zillow report noted that across the country 21.2 percent of homes were losing value on average prior to the housing market crash and that the recession high was December 2008 when 81.6 percent of home values dropped.
According to the report, “the national growth rate has leveled off over the past five months, suggesting the housing recovery is ending and the market is returning to normal.”
Although on a national level homes are worth 3.3 percent more this year over last — measuring $180,800 on the Zillow Index — Gudell emphasized that not all markets are equal.
“It’s easy to say the recession is over when a third of the biggest markets are more expensive now than ever before, but we’re still seeing a number of homes losing value,” he added in the statement. “The reality is there are still areas lagging behind in the recovery.”