More than half of all U.S. homes — 53 percent — are worth less today than they were a year ago, according to new data from Zillow.

As of October 2025, the majority of properties have seen their Zestimate — Zillow’s automated home valuation tool — drop below levels recorded 12 months earlier, a level not seen since April 2012.

Despite the widespread cooling, the vast majority of homeowners remain significantly ahead financially. Nationwide, the median home value increase since the property last sold — roughly eight and a half years ago at the median — is 67 percent.

While 53 percent of homes have lost value over the past year, most have also fallen from their individual peaks. The average drawdown from peak value currently stands at 9.7 percent, which has not worsened substantially over the past three years. That marks a larger setback than the 3.6 percent average drawdown in spring 2022, but remains roughly level with pre-pandemic rates and far below the 27 percent average drawdown seen in early 2012.

What matters most to owners’ financial positions is whether they have lost value relative to their purchase price. In October, only 4.1 percent of homes were valued lower than when they last sold. That share is up from 2.4 percent last year, but remains significantly lower than the 11.2 percent of homes in that position before the pandemic.

The continued lack of homes for sale indicates that the overwhelming majority of sellers are not being forced to sell at a discount. Only 3.4 percent of new listings coming to market are priced below their last sale price, up slightly from 2.1 percent a year ago but still just over half the 2019 rate of 5.9 percent.

Markets that overshot during the pandemic-era boom are now seeing sharper corrections, while historically steadier regions are proving more resilient. Many Sun Belt and Western markets that attracted remote workers and investors during the pandemic are now leading the decline in the share of homes losing value. Some Midwestern and Northeastern markets, where appreciation had been more modest, are proving more resilient, with a smaller share of homes registering year-over-year price drops.