A recent market overview put out by Zillow. The tide is changing.
More than half of US homes lost value in the past year
What the data shows:
- As of October 2025, about 53 % of
U.S. homes had lost value over the past year, based on Zillow’s home-value
estimates.
- This is the largest share of
homes in decline since April 2012.
- Crucially: only around 4.1 % of
homes are now worth less than their last sale price, so although
many homes are down from peak, most owners still have equity.
- The decline is geographically
uneven — certain metros and regions are faring worse than others.
Why it matters
For homeowners, buyers and real-estate investors this trend signals a
cooler market — not necessarily a crash, but definitely a shift away from the
frenzied appreciation seen in recent years.
- With over half of homes down, the
“seller’s market” advantage is fading.
- For those looking to buy or
invest: there may be more negotiating leverage and more cautious pricing
to account for.
- For owners and sellers: it means
longer holds, tighter margins, or reconsidering the exit timing.
- For lenders and credit risk: the
fact that only 4.1 % of homes are below sale price is reassuring, but the
uptick in value-loss calls for careful monitoring.
Context & caveats
- The metric is about homes that
lost value in the past year, not about how many sold at a loss or were
foreclosed.
- The fact that so few homes are
below their last sale price suggests distress is still limited.
- Local markets matter a lot:
national averages mask big regional differences. Some areas are seeing
steeper declines, others less so.
- For real-estate fund managers or
investors (particularly in distressed or value-add plays) this could
indicate opportunity — but it also emphasizes the need for
location-specific underwriting, careful stress-testing, and understanding
the tail risk in weaker sub-markets.
Weitz Take:
Ya don't say?..... Obviously this is not a surprise if you'd read this blog.
The Zillow data illustrate a meaningful shift in the U.S. housing
landscape: more than half of homeowners saw their property values decline in
the past year. While the widespread panic of a full crash hasn’t hit (yet), the
market is clearly moving toward more modest, cautious territory. For
real-estate investors and fund managers, this means a mixed bag of risk and
opportunity — the winners will be those who stay disciplined, localized, and
forward-thinking in their underwriting.
If you have any questions on questions on investing in Snohomish County Real Estate, we'd love to help.
Scott Weitz
Weitz Commercial
Scott@WeitzCommercial.com
T: 206.306.4034
