Source: USA Today —
As mortgage rates continue their upward march, the share of U.S. homes worth seven figures is dropping.
In another indication of the cooling housing market, homes that would have been worth $1 million or more at the peak of the pandemic homebuying frenzy are now languishing at a lower price tier, according to a new analysis by Redfin.
In January, homes valued at $1 million or above fell to 7% compared to 8.6% last June at the peak of the market. However, they still makeup a bigger share of the pie compared to January 2020, just the before then pandemic, when a little over 4% of the homes were in the $1 million range.
“In other words, this is what we think the home would sell for if the owner did decide to list it,” Angela Cherry, the director of communications at Redfin told USA TODAY.
To calculate current values (January 2023), the Redfin Housing Value Index uses the Redfin Estimate, which is available in most but not all parts of the U.S.
To calculate historical values, it uses public records and MLS data on price-per-square-foot trends by ZIP code (or city, county, or state when ZIP code data is insufficient). The Redfin Home Value Index includes both existing homes and new-construction homes, and dates back to the year 2000. Homes are not added to the index until they are first built or sold.
The share of homes worth at least $1 million was calculated using these raw numbers: 6,203,954 homes were worth at least $1 million in January 2023, compared with 7,458,031 in June 2022 and 6,030,177 in January 2022, Redfin told USA TODAY.
U.S. homeowners lost $2.3 trillion in home value
