2023-08-11 16:31:15
Bloomberg — The US housing market has recouped nearly $3 trillion in value that was wiped out during last year’s downturn, according to an estimate by brokerage Redfin Corp. (RDFN).
The housing shortage has pushed up prices, pushing the total value of US homes to a record $47 trillion, the brokerage reported.
Many homeowners secured cheaper mortgage rates before borrowing costs started to rise last year, so they’re reluctant to give them up. Just 1% of US homes have changed ownership this year, the lowest proportion in at least a decade, according to Redfin.
Homeowners “are standing by because moving would mean taking on twice as high an interest rate,” Chen Zhao, Redfin’s head of economics research, said in the report. “This means that the buyers who are now in the market are fighting for a very small group of homes, which prevents the value of the house from collapsing.”
Atlanta homes posted the largest increase in value, $40.1 billion more than last June. Boston posted a profit of $33.4 billion, while Miami stocks rose $30.3 billion.
In percentage terms, the largest gains occurred in relatively affordable markets. Little Rock, Arkansas homes posted an 8.8% increase over the prior year, while Camden, New Jersey, values rose 8.7%. The more reasonable set of costs in those cities likely boosted buyer demand, according to Redfin.
Values fell from the previous year in 32 metropolitan areas, with California cities being among the hardest hit. Los Angeles posted the biggest decline, nearly $153 billion, followed by Oakland, with nearly $86 billion. Home values in San Francisco fell by about $58 billion.
Read more at Bloomberg.com
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