Source: Quartz —
US homes have recorded the largest fall in value since the global financial crisis.
In June 2022, US homes were worth a record $47.7 trillion. By the end of the year, they fell by almost 5% to $45.3 trillion. That’s the largest June-to-December drop in percentage terms since 2008, according to an analysis of real estate brokerage Redfin of more than 99 million US residential properties.
In those six months, homebuyer demand has waned, largely due to rising mortgage rates driven by successive Federal Reserve interest rate hikes, which made buying a home more expensive. As such, the housing market has shed value—especially in pricier metros and tech hubs.
Changes in US home prices, by the digits
$383,249: Median US home sale price in January 2023, down 11.5% from a peak of $433,133 in May, and up just 1.5% from January 2022.
6.36%: Average 30-year fixed mortgage rate in December, down from the 20-year peak of 7.08% in November but still roughly double the level at the start of 2022.
$13 trillion: How much higher the total value of US homes is compared to February 2020, the month before the coronavirus outbreak
Why did prices plummet in pricey coastal tech hubs?
In already expensive markets, home values had more room to fall.
