A staggering $9 trillion in home equity has been lost since the real estate market peaked in June 2006, Zillow reported today.
This year, U.S. homes are expected to lose more than $1.7 trillion in value, a 63 percent increase from the $1 trillion lost in 2009.
Zillow noted that the loss of equity is 12 times the cost of the war in Iraq, which has a price tag of $750.8 billion from 2001 through September 2010.
Less than a quarter (31) of the 129 real estate markets tracked by Zillow showed gains in total home values during 2010, though the Boston metropolitan statistical area (MSA) is expected to gain $10.8 billion in value, and the San Diego MSA is slated to see a $10.2 billion gain.
Conversely, New York City is expected to lose $103.7 billion in house value this year, followed by Los Angeles with a $38.6 billion loss and Phoenix with a $36 billion drop.
“Unfortunately, with foreclosures near an all-time high in late 2010 and high rates of negative equity persisting, it does not appear that the first part of 2011 will bring much relief,” said Zillow Chief Economist Dr. Stan Humphries, in a statement.
Meanwhile, the number of underwater borrowers continues to increase, with nearly a quarter (23.2%) in a negative equity position as of the end of the third quarter and the number likely to rise even higher by year-end.