Over half of US homes lost value last year?

I'm smiling on the outside but crying on the inside. Do you have any idea what I pay in taxes!

Over half (53%) of U.S. homes lost value in the past year, according to Zillow.

By Sami Sparber, Axios News

Dec 8, 2025

Why it matters: That's the most since 2012 — but the vast majority of homeowners still "have plenty to feel good about," the real estate site reports.

State of play: Many homeowners bought before prices surged in the early 2020s. As of October, the median home value had jumped roughly 67% since the property was last sold.

Just 4% lost value in that time, around 8.5 years for the typical homeowner.

Losses between sales are up slightly from a year ago (2%) but lower than pre-pandemic levels (11%).

The big picture: It's a homebuyer's market right now, if you can afford it. Persistently high mortgage rates and prices have sidelined many.

Nationwide, home sellers outnumber buyers by a record 37%, Redfin estimates.

The West and South, where there are more available homes and greater climate risks, saw the most widespread losses over the past year.

Most major metros in those regions saw at least half of homes lose value, led by Denver (91%), Austin, Texas (89%) Sacramento, California (88%), Phoenix (87%) and Dallas (87%), Zillow found.

Meanwhile, only three major metros in the Northeast and Midwest saw most homes lose value: Minneapolis (55%), Des Moines, Iowa (54%) and Scranton, Pennsylvania (52%).

Reality check: There's a difference between taking a loss and being "underwater," or owing more money to your lender than the house is worth.

Far fewer homes are underwater today compared to 2019, Zillow chief economist Mischa Fisher says.

The bottom line: "While fluctuations in home values can distress watchful owners, the vast majority are sitting on large equity gains that they can take advantage of when they sell," Fisher tells Axios.