Los Angeles Homes Lose Value Drastically
Goodness, what a tough time to live in Los Angeles. A report that came out by Zillow.com said that the value of homes in Los Angeles went down by a total of $60.8 billion in in the first 11 months of 2009. That’s the highest figure in the country, but still less than last year’s loss of $345.8 billion.
Some other cities were listed as well. For instance, Chicago values went down $49.6 billion through November, New York City homes went down $49 billion, and Miami-Fort Lauderdale homes went down $45.9 billion. The last one, to complete the worst five, is Phoenix, which decreased $45.1 billion.
Boston homes gained $23.3 billion during the first 11 months of the year, the best performing large city. Nationally, home values dropped $489 billion through November, compared with $3.6 trillion in 2008.
So, how does one gauge information like this? Is it good news because the rates are slowing down, or is it still horrible news because if you add last year’s loss to this year’s loss it’s still, in total, higher than it was last year, at least for most cities? In other words, the value of Los Angeles property is down $405.8 trillion since the beginning of 2008; that’s still really bad.
Of course, because it’s Zillow, I do have a slight question as to its overall validity. Earlier this year they showed my house gaining in value while the rest of the area was decreasing, and in the last four months the worth of my house has decreased almost $60,000, which makes absolutely no sense until you know a bit more about my neighborhood. At the beginning of the year, there were two homes on the market on this street, but both were FSBO‘s. Around April or May, that’s when both homes hooked up with a realtor, and, because they’d been trying to sell their homes for a long time, once listed with someone, the value of my house started dropping. So, I don’t have the greatest faith in their statistics.
Still, we know that, with all the foreclosures and lagging home sales, the value of homes across the country have dropped. So, whether it’s fully accurate or not, we know the news isn’t great.