Home Values See Smallest Decline in Four Years

Seattle, WA, Dec. 22, 2011 -- U.S. home values are likely to see their smallest decrease in four years in 2011, according to Zillow Inc.

The total value of U.S. housing probably fell by more than $681 billion, about 35 percent less than the $1.1 trillion lost in 2010, Zillow said in a press release.

A projected decline of $227 billion from July to the end of this month compares with $454 billion lost in the first half of the year, according to Zillow.

Property values won't recover until there's an increase in buyer demand, Zillow said.

“While homeowners suffered through another year of steep losses, the good news is that homes are losing value at a substantially slower pace as the market works its way towards the bottom,” Stan Humphries, Zillow’s chief economist, said.

While property values fell at a slower rate this year, an oversupply of homes for sale, low consumer confidence and an 8.6 percent unemployment rate will probably keep the housing market from recovering until late next year or early 2013, Humphries said.