ORIGINALLY PUBLISHED DECEMBER 11, 2010 AT 11:30 A.M., UPDATED DECEMBER 13, 2010 AT 11:28 A.M.
San Diego had the best home-value improvement in 2010 out of large metro areas , according to Zillow.com.
The area's estimated year-end value for all homes was $378.5 billion, up $10.2 billion from 2009. At 2.8 percent, that was the biggest rise in the top 20 and 14th among all 129 markets.
However, only two markets -- Binghamton, N.Y., and Virginia Beach, Va. -- are higher than their peaks. One -- Cedar Rapids, Iowa -- has no change and all others are down.
San Diego is down $151.6 billion or 28.6 percent from the peak of $530.1 billion, set in the third quarter of 2005, while the U.S. as a whole is down slightly less, off $9 trillion or 28.5 percent to $22.7 trillion.
Binghamton, located in upstate New York, was up only only $79 million or .8 percent from the peak set in the second quarter 2008 to $10.1 billion. The biggest decrease -- 65.1 percent -- occurred in Merced, down $14.5 billion from the peak reached in the fourth quarter of 2005 to $7.8 billion.
Zillow uses a proprietary estimation system to calculate values of all homes, while most real estate statistics are based on actual sales. Sales figure into these "Zestimates" but the company uses other factors to arrive at values for homes that have not sold lately or are not on the market.
Zillow said the bulk of losses nationally occurred in the second half of the year, following the end to the federal homebuyer tax credits. It said only 31 of the 129 markets it watches poisted gains in values during the year.
The company compares to losses to the cumulative cost of the Iraq War at $750.8 billion. But these losses, as with stocks, are only theoretical until an owner actually sells a property and incurs an monetary loss.
While San Diego had the best upswing of the year among the biggest markets, recent sales figures indicate that prices have slid back below their recent peaks and some economists believe there will be little change next year.
For example, the MDA DataQuick report for October showed that the overall median sales price of $334,500 was up from September and October 2009, but was down from the recent peak of $340,000 in May.
Roger Showley, (619) 293-1286, roger.showley@uniontrib.com, Twitter: @rmshowley
