U.S. home values are poised to drop by more than $1.7 trillion this year amid rising foreclosures and the expiration of homebuyer tax credits, said Zillow Inc., a closely held provider of home price data.
This year’s estimated decline, more than the $1.05 trillion drop in 2009, brings the loss since the June 2006 home-price peak to $9 trillion, the Seattle-based company said today in a statement.
“It’s definitely going to continue into 2011,” Stan Humphries, Zillow’s chief economist, said in an interview on Bloomberg Television today. “The back half of 2010 looked horrible and 2011 should look like the mirror image of that.”
So much for the Baby Boomers who thought they’d fund their retirement off of their homes, and use the extra to buy a golf course condo in Florida.
mark my words, we will see a large scale demolition of homes, the banks will grow so weary of holding on to them they’ll decide it’s better to raze them.