The US housing market just reached a new all-time high valuation of $47 trillion, Redfin reported. That surpassed the previous record of $46.6 trillion set a year earlier. Low inventory has pushed up home values, according to a Redfin analysis of 90 million US residences. Loading Something is loading.
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Tight inventory in the US housing market helped push its total valuation a new all-time record of $46.8 trillion in June, according to Redfin.
That beats out the prior record set last year, of $46.6 trillion. The report said a shortage of homes has been propping up housing values, based on a Redfin estimate on more than 90 million US residential properties.
The value of US homes climbed 0.4% from a year earlier in June, and now hovers 19.1% higher than two years ago.
Notably, the housing market has now offset the $2.9 trillion decrease in value that happened between June 2022 and February 2023 as a result of rising mortgage rates.
“The dominance of the 30-year fixed rate mortgage in America is propping up home values,” Redfin economist Chen Zhao said. “Tons of homeowners scored an incredible deal during the pandemic: a 3% mortgage rate for the remainder of their 30-year loan. Now they’re staying put because moving would mean taking on a rate that’s twice as high. This means buyers who are in the market now are duking it out for a very small pool of homes, preventing home values from plunging.”
Total worth of US real estate hits record high of $46.8 in June 2023. Redfin According to the report, roughly nine out of 10 homeowners with mortgages currently have rates under 6%, well below the near-7% levels seen since the end of 2022. That’s led to just 1% of the country’s homes changing hands this year, Redfin said, the lowest amount in at least a decade.
Meanwhile, the number of homes for sale in the US hit an all-time low in June, falling 15% on an annual basis.
Other findings in Redfin’s latest survey included:
Los Angeles saw the biggest decline in aggregate home value, with a $152.6 billion annual decline in JuneHome values worth between $500,000 to $750,000 saw a 4.1% annul increase in value, while those between $2 million and $5 million saw a 7.4% drop in valueHome values held up better in suburban and rural areas compared to urban areasMillennials now own more of the market by valuation than the silent generation, or those born between about 1925 and 1945″The U.S. housing market has become a system of winners and losers,” Zhao said. “The winners are homeowners who bought before mortgage rates started rising; they continue to build equity even though homebuyer demand has slowed. The losers, sadly, tend to be first-time buyers. They’re entering the market at a time when it’s expensive to borrow money, home prices are near their record high, and there are very few houses to choose from.”