A new survey from Web site Zillow.com says more than half (57%) of home owners now say that their home lost value in the past year. This is much higher than the 38% who believe that was so at the end of last year’s third quarter. By Zillow’s calculations 76% of all U.S. homes lost value in 2008.
Homeowners are slightly more optimistic that their house will gain value in the first half of this year. Some 70% believe home values in their local market will decrease or stay the same. Last year 57% felt local prices would decrease.
BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.