“Home values surged over the past six years, and the vast majority of homeowners still have significant equity. What we’re seeing now is a normalization, not a crash.”
Home value declines most widespread in the West and South
The downturn has been most pronounced in the West and South, with metros like Denver, Austin, Sacramento, Phoenix, and Dallas seeing 87% or more of homes lose value year-over-year.
On the other hand, the Northeast and Midwest have largely avoided widespread declines, with only a handful of metros—such as Minneapolis and Des Moines—seeing a majority of homes lose value.
Despite the recent drop, the typical homeowner remains in a strong position. Nationally, the median home value has increased 67% since the last sale, which for most owners was about eight and a half years ago.
Even in markets with steep recent declines, long-term owners have generally seen substantial appreciation.