U.S. homeowners have lost $2.3 trillion since June, according to a new report from the real-estate brokerage Redfin. The total value of U.S. homes was $45.3 trillion at the end of 2022, down 4.9% from a record high of $47.7 trillion in June. That figure signifies the largest June-to-December percentage decline since 2008.
The report comes during increased mortgage rates as the Fed tries to curb inflation. The 30-year fixed mortgage rate sat at 6.36% in December, about twice what it was at the start of 2022. Though rates fell in early February, they’ve since risen back to December levels.
Now that Americans are holding off buying homes, prices have dropped. The median U.S. home sale price was $383,249 in January, which was up just 1.5% from the previous year, according to the report.
Redfin highlighted the Bay Area, noting that the region had seen the biggest drop in real-estate value compared to other parts of the country. The total value of San Francisco homes fell 6.7% in December, to $517.5 billion, a $37.3 billion decline year over year.
Florida’s housing market has shown the largest increase in real-estate value compared to other parts of the country. The total value of homes in Miami rose 19.7% year over year ($77 billion) to $468.5 billion in December. Of course, it’s low-bandwidth folks from the North and West, moving to Florida, that are driving the market.
Still, the total value of U.S. homes remains roughly $13 trillion higher than it was in February 2020
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