Single-family homes in the New York City and Washington area are rapidly losing value, according to Bloomberg. The drop in value is a sign that the rising costs of living in these areas might have peaked.
Most houses are losing value annually; houses that have in previous years experienced a two percent loss are now experiencing a 24 percent loss in the last ten years, according to PRNewswire.
In 2015, the value of 45 percent of single-family homes in New York City and Washington D.C. dropped by at least two percent compared to 2014, according to Mortgage News Daily. The year before saw only 15 percent of homes in these areas lose value.
Even more homes throughout the nation have also seen a loss in value, cities that include Los Angeles, Chicago, Phoenix and Miami, according to Bloomberg. The numbers could be higher, but the current report only includes data about single-family homes.
Allan Weiss, principal of Weiss Residential Research LLC and a co-creator of the Case-Shiller home prices indices, says that this could be an early warning sign that the market may be in danger, according to Mortgage News Daily.
"If you have a market where every house is rising and you hear the news that the housing market is up, you're correct in applying it to your own home. However, if you are in a market where 60 percent of houses are rising, you have a 40 percent chance of misunderstanding what's going on with your house," Weiss said.
