Do you remember the financial crash of 2008? This is driven in part by the housing market’s bottom line.
A new analysis from online real estate company Redfin suggests we’re on the brink of worse than that.
He estimates that US homeowners have lost $2 trillion in value since last June. Does anyone expect these numbers to improve in the coming months?
Breitbart News reports:
Redfin: US homeowners have lost $2.3 trillion in value since June
Homeowners in the United States lost $2.3 trillion in value at the peak in June, according to an analysis by Redfin.
“The total value of US homes was $45.3 trillion at the end of 2022, down 4.9% ($2.3 trillion) from a record high of $47.7 trillion in June,” claims an analysis of the Redfin Housing Value Index. The decline in total assessments across the United States was the “largest” decline in total percentage terms from June to December since 2008, the research indicated.
This is directly from Redfin:
The total value of US homes rose 6.5% in December from a year earlier, the smallest year-over-year increase of any month since August 2020. That’s according to a Redfin estimates analysis of 99 million US households. Characteristics.
The housing market has been losing value as homebuyer demand has waned, causing home prices to fall from their peaks. The median US home sale price was $383,249 in January, down 11.5% from a peak of $433,133 in May and up just 1.5% since January 2022.
Homebuyer demand slowed in large part because rising mortgage rates—a result of the Federal Reserve’s efforts to curb inflation—made buying a home more expensive. The average 30-year fixed mortgage rate in December was 6.36%. While that is below the 20-year peak of 7.08% in November, it has roughly doubled since the start of 2022. Rates fell in early February, giving buyers some hope, but have since returned to December levels.
People are not buying more because they have less money and the cost of borrowing is higher.
Redfin data..worst 6 months for housing since 2008.
The full effects of the fare hike are yet to kick in and Uber Hawks want it more. They are never satisfied.
Anchoring faulty lag data. pic.twitter.com/H7dHlnGRY3
– James E. Thorn (@DrJStrategy) February 23, 2023
The next Republican administration needs to do things to encourage more residential building. You know the Biden administration is definitely not going to do that.