THE BASIS POINT

Home values lost $2.3t since June peak, San Francisco lost most, millennials gained most. Market still worth $45t.

 
 

A new Redfin report shows U.S. home values dropped $2.3 trillion from June to December 2022. While this is the largest June to December percent drop since 2008, U.S. homes are still $45.3 trillion. Here are a few other notables from the report.

– The $2.3 June to December drop is down from a record high of $47.7 trillion in June.

– This comes after the housing market appreciated 41% from January 2020 to pandemic peak.

– Of the 100 metro areas analyzed, San Francisco took the biggest hit, falling $37.3 billion (6.7%) to $517.5 billion from December 2021 to 2022.

– On a related note, home values in U.S. suburbs did better than cities as the pandemic work from home trend played out. From December 2021 to 2022, suburban home values rose 6.4% to $25.4 trillion, and urban home values rose 2.5% to $10.8 trillion.

– Redfin’s estimate of median home prices in January 2023 was $383,249, down from a peak of $433,133 in May 2022.

– This compares to NAR’s estimate of median home prices in January 2023 was $359,000, down from a peak of $413,800 in June 2022.

– The difference is that NAR’s median price is based on existing homes that sold in those months, and Redfin’s median price is based on new and existing homes for sale and not for sale in those months.

– Millennials, then Gen X, then Boomers gained most in percent terms. Millennial (age 27-42) home values rose 26.7% to $5.6 trillion from 3Q21 to 3Q22. Gen X (age 43-58) values rose 18.4% to $13.9 trillion. And Boomers (age 59-77) values rose 12.9% to $18.1 trillion.

– Redfin says their dataset includes 99 million properties, and claims a median error rate of 2.20% for homes that are for sale, and 7.21% for off market homes.

Here’s the link to Redfin’s full homeowner value report.

Also adding 2 other links, including affordability analysis from this week using NAR’s median home prices.

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Reference:

U.S. Homeowner Value Lost $2.3 Trillion in Value Since June Peak

Home prices affordable at $359k after sales fall 12th straight month in Jan 2023

U.S. home prices up 41.3% since January 2020 and down 1.9% from this peak

 

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