U.S. homeowners have lost a staggering $2.3 trillion in market value since June as higher interest rates drive down demand in the formerly red-hot housing market, and many economists predict the decline will continue throughout the year, as mortgage costs remain elevated and keep sidelining potential buyers.... [+]
with the collapse in existing home sales, which have plummeted nearly 40% from their pandemic peak, says one economist.The total value of U.S. homes has fallen from a record high of $47.7 trillion in June to about $45.3 trillion at the end of last year—representing the largest June-to-December drop since the subprime mortgage crisis was unraveling in 2008, real estate brokerage RedfinThough home prices are up about 1.5% over the past year, the median price has fallen about 11.
“The housing market has shed some of its value, but most homeowners will still reap big rewards from the pandemic housing boom,” says Redfin economist Chen Zhao, noting the total value of homes remains about $13 trillion higher than in February 2020—before the pandemic abruptly tanked the economy. Nevertheless, prices are likely to only fall further:"The big story for 2023 will be the speed and extent" to which the decline in prices follows suit with the collapse in existing home sales, which havePantheon ultimately projects home prices will fall by about 20% from their peak by the end of this year, suggesting the median price could tumble another 10% to about $346,500, per Redfin's data.Some economists are slightly more optimistic prices will hold up more.
just 0.7% in January, according to the National Association of Realtors.“The downturn in sales is coming to an end . . . but a sustained recovery is a long way off,” says Pantheon Macro’s Kieran Clancy.
Thank Biden.
2.3 trillion that never existed....it was a collective fantasy....
Don't worry, Joe Biden and Kamala Harris are on the job!
If you weren’t selling, you didn’t lose anything. Purchasers have lost the most, bc the rates went up and affected monthly payments.
Still up by like 50% over ten years.
Let's go Brandon!
With all those inflated pandemic prices … Expect to lose another 5 trillion in value by end of 2023
Formerly?
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