A recent Redfin report revealed that U.S. homeowners lost $2.3T in value in 2022.
The total value of U.S. homes dropped from $47.7T in June to $45.3T at the end of last year.
- The report cited decreasing homebuyer demand that drove down home prices from their peak as the primary reason for the decrease in value.
- The 4.9% value loss is the most significant June-to-December drop since 2008.
- The median U.S. home sale price plummeted 11.5% from $433,133 in May 2022 to $383,249 last month.
- Other insights from the Redfin report include the following:
- San Franciso Bay Area took the biggest hit with a 6.7% YoY decrease, followed by Oakland (4.5%) and San Jose (3.2%) Bay Areas;
- The value of homes in Miami increased 19.7% YoY;
- Suburban areas are performing better than cities;
- The value of homes owned by millennials surged 26.7% YoY.
