More than half of U.S. homes have lost value in the past year, according to new research from Zillow Group Inc., marking the highest share since 2012. The analysis found that 53% of homes experienced a decline in value from last year, with an average drawdown of 9.7%. Despite this, actual financial losses for homeowners remain rare; only 4.1% of homes are now valued below their last sale price, a figure that is still lower than pre-pandemic levels. Nationally, home value appreciation has been flat over the past year, though regional differences persist. The median home value has increased 67% since its last sale, and most homeowners have seen significant equity gains during their ownership. Fast-growing metros such as Buffalo, San Jose, Providence, Columbus, and San Diego have experienced even greater increases. Zillow's analysis suggests that the current environment represents a market normalization rather than a crash, with most sellers not being forced to sell at a loss due to continued supply constraints.