More than half of U.S. homes are declining in value, according to a recent report from Zillow, the largest share since 2012.

A study by the online real estate marketplace, released on Monday, found that 53 percent of all U.S. homes have seen their valuations drop compared to last year, with a nationwide average decline of 9.7 percent compared to their peak price.

Why It Matters

As Zillow writes in its report, “home value declines can be scary. For most homeowners, their house is their largest asset, and equity built over time is a major part of their long-term saving and retirement plans.”

The widespread declines reflect a slowdown in demand and reluctance among would-be buyers , itself driven by rising barriers to homeownership such as costs and elevated mortgage rates as well a

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