Real estate markets in California dominate a list of metro areas with the steepest percentage-based decline in home values over the past five years.
Data prepared by online real estate valuation and search company Zillow — based on the company’s home-value estimates and its Zillow Home Value Index, which is generated from those value estimates — reveals that six of the 10 metros with the most severe 5-year fall in value are in California, while two are in Florida and the other markets are in Arizona and Nevada.
The five-year declines in estimated value range from 67.6 percent to 55.6 percent, while the estimated dollar-value declines range from to $382,115 to $125,243.
See related report: "10 metros with greatest 5-year gain in real estate values."
Methodology: Zillow’s Zestimate home valuations are the basis for the Zillow Home Value Index. A Zestimate is Zillow’s estimate of the current market value for a home. The Zillow Home Value Index is the median Zestimate valuation for a given geographic area on a given day. Zillow generates valuations several times a week on more than 70 million homes, or roughly three out of four homes in the U.S., and calculates historical values dating back to 1997.
The statistical models underlying the Zestimates control for the mix of housing for sale by finding patterns in the types of homes that are selling and then applying these patterns to all homes. If only a few homes of a certain type sell in a given period, the models can extract the information from those sales and apply that information to all homes of that type. –Source: Zillow.
|July 2011 Zillow Home Value Index||$106,514|
|ZHVI 5 years ago||$328,813|
|Value difference (by percent)||-67.6%|
|Value difference (in dollars)||-$222,299|
Merced tower. Flickr/Justin Marty.