Eurodollar University Zillow Just Issued a Grim Warning to All Homeowners
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Nov 24, 2025 A staggering 53% of American homes lost value in the past year, marking a return to trends last seen during the 2010-2012 bust. While mortgage rates have dropped, they haven't revived the housing market due to deeper issues with jobs and income. Builders face excess inventory, pushing resale prices down, while consumer confidence dwindles ahead of the holidays. Falling wages and job cuts exacerbate economic strain, suggesting a broader normalization to housing fundamentals is needed as spending tightens.
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Widespread Home Price Decline
- Zillow reports 53% of U.S. homes lost value over the past year, with an average decline near 10% from the peak.
- Jeff Snider argues falling home prices show the core problem is jobs and incomes, not interest rates.
Rate Cuts Aren't Reviving Housing
- Lower mortgage rates have not revived housing demand despite expectations, indicating a different constraint on the market.
- The hosts link the weak housing response to deteriorating labor market fundamentals and falling incomes.
Builder Inventory Pressures Resale Market
- Builders carry a large inventory overhang and can cut prices, which pressures resale values and traps homeowners needing to sell.
- That dynamic risks a downward spiral as margin compression forces more discounts and layoffs in construction.