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Home values to drop by $1.7 trillion this year

Survey: Recovery may not arrive until 2013 or beyond

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This year has not been kind to U.S. home values. Homes are expected to lose $1.7 trillion in value this year -- 63 percent more than they lost during 2009, according to a report released today by online real estate site Zillow. The second half of 2010 will account for the bulk of the loss, $1 trillion, compared with $680 billion from January to June, the company reported. "Government interventions like the homebuyer tax credit helped buoy the market during the second half of 2009 and the first half of 2010, but we saw a renewed downturn in the last half of this year," said Stan Humphries, Zillow's chief economist, in a statement.  "It's a testament to the nearly irresistible force of the overall market correction that government incentives can only temporarily hold back the tide, and that the market will ultimately find its natural equilibrium of supply and demand." Since the market peaked in June 2006, homes have lost an estimated $9 trillion in val...