More than half of homes across the country have lost value over the past year, and the Los Angeles area is among the markets most affected by falling home prices. Even so, most homeowners still hold sizable gains because they have owned their properties for many years.
According to real estate platform Zillow, as of October, 53% of homes nationwide were worth less than they were a year earlier. That share is up sharply from 16% a year ago and is the highest level since April 2012. Zillow said the trend of homes losing value is spreading across almost all U.S. cities and noted that after several years of steep price increases, some value declines are a natural step now that many properties have already hit their peak.
The impact is most visible in large metros in the West and South. Among 64 major metros in those regions, 49 saw a higher share of homes losing value than gaining value. The metro with the largest share of homes down from a year earlier was Denver, at 91%. It was followed by Austin in Texas at 89%, Sacramento in California at 88%, and both Phoenix in Arizona and Dallas in Texas at 87%.
In Los Angeles, 78.5% of homes were worth less than a year earlier. The pattern was similar in other Southern California markets, with San Diego at 77.8% and Riverside at 74.3%…