Depreciation Taking a Toll on Home Sellers

Data shows nearly one-third of Americans who sold their home in the past year lost money, and that trend is likely to persist, according to Zillow. According to the third quarter Zillow Real Estate Market Reports, which evaluates 163 metropolitan areas, some of the country's largest metropolitan areas are seeing a decline of 9.7% year-over-year in home values with the Zillow Home Value Index currently standing at $202,966. Combined with the overall economic crisis, depreciation in home values is causing additional distress to homeowners who need to sell their property at a loss due to foreclosure or other reasons. Foreclosures made up almost one in five, or 18.6%, of all transactions in the past 12 months. 30.2% of homes sold were sold for a loss, up from 23.7% at the end of the second quarter. In 17 markets - 14 of which are in California - more than half of homes sold in the past year were sold for a loss.