Markets go up but they also go down, when they do they hit hard, I assume.

Since reaching its peak in June, the housing market in the United States has experienced a decrease in value, causing American homeowners to lose a total of $2.3 trillion. At the end of 2022, the total value of U.S. homes was $45.3 trillion, down 4.9% from the record high of $47.7 trillion in June.

This decline in percentage terms marks the largest drop from June to December since 2008. However, despite the drop, the total value of U.S. homes was still up 6.5% from the previous year in December, but this increase is the smallest year-over-year increase recorded since August 2020. This data comes from an analysis of Redfin Estimates on more than 99 million U.S. residential properties. According to an analysis of Redfin Estimates, the Bay Area housing market has taken a bigger hit in percentage terms than any other region in the country. This is due to slow demand. Conversely, Florida continues to see significant gains in the housing market.

Home values in the suburbs are holding up better than in cities. This is due to an exodus of residents from cities to suburban areas as a result of remote work opportunities. Millennials, who are now in their prime homebuying years, have experienced larger value gains than other generations.

Asian homeowners have been hit particularly hard by the decline in home values. Meanwhile, values in areas with high flood and/or heat risk have held up better than values in areas with low risk. This suggests that climate dangers are not being factored into home values.

At the end of 2022, the total value of U.S. homes was $45.3 trillion, which is down 4.9% ($2.3 trillion) from the record high of $47.7 trillion in June. This represents the largest June-to-December drop in percentage terms since 2008. While the total value of U.S. homes was up 6.5% from a year earlier in December, this is the smallest year-over-year increase during any month since August 2020. These findings are based on an analysis of Redfin Estimates on over 99 million U.S. residential properties.

The housing market has been losing value as a result of a decrease in homebuyer demand, causing home prices to fall from their peak. In January, the median U.S. home sale price was $383,249, which is down 11.5% from a peak of $433,133 in May. However, it is up by only 1.5% from January 2022.

One reason for the decrease in homebuyer demand is the rising mortgage rates. These rates are a result of the Federal Reserve's efforts to curb inflation, making it more expensive to purchase a home. In December, the average 30-year fixed mortgage rate was 6.36%, which is down from the 20-year high of 7.08% in November. However, it is still approximately double the level from the start of 2022. Rates fell in February, but they have since risen back up to December levels.

According to Redfin Economics Research Lead Chen Zhao, the housing market has lost some value, but most homeowners will still profit from the pandemic housing boom. The total value of U.S. homes is roughly $13 trillion higher than it was in February 2020, the month before the coronavirus was declared a pandemic.

However, many Americans missed out on this opportunity due to their inability to afford to buy homes, even when mortgage rates were at their lowest in 2021.

To provide a more accurate analysis, year-over-year comparisons are used in this report for metro-level and demographic breakdowns, rather than comparisons to the peak, as different areas and groups saw home values peak at different times.

Suburbs Are Faring Better Than Cities

In terms of home values, suburbs are doing better than cities. According to recent data, the total value of homes in American suburbs rose by 6.4% year over year to reach $25.4 trillion in December. In comparison, the value of urban homes increased by only 2.5% to $10.8 trillion. Rural homes, which represent a small percentage of the housing market, also saw an increase in total home value, rising by 8.5% to reach $6.2 trillion.

Posted Using LeoFinance ^Beta