The U.S. housing market is rebounding, surpassing the $3 million mark and reaching a record total value of $47 million.

The total value of U.S. homes hit an all-time high of $46.8 trillion in June, surpassing the previous record of $46.6 trillion set a year earlier, as a shortage of homes for sale supports home values.

An analysis of Redfin Estimate for more than 90 million U.S. residential properties shows this. This data is subject to revision.

U.S. home values rose 0.4% ($166.2 billion) from a year ago in June and 19.1% ($7.5 trillion) from two years ago.

The housing market has now offset the $2.9 trillion decline in value caused by rising mortgage interest rates that occurred from June 2022 through February 2023.

Today's housing market is unique''by the fact that home values are at record levels, even though demand is low. Despite cooling demand, there is a shortage of homes because very few homeowners are selling their homes. This imbalance between supply and demand is keeping housing values up.

"The availability of 30-year fixed mortgages in America is supporting housing costs," said Chen Zhao, principal researcher at Redfin Economics. "A lot of homeowners got an incredible deal during the pandemic: a 3% mortgage rate for the remaining term of their 30-year loan.

In other countries, variable mortgage rates are more common than fixed rates, meaning the 'lock-in effect' is much less common there. About nine in 10 homeowners with a mortgage have an interest rate of less than 6%, nearly one percentage point lower than the average rate of 6.96% today.

As a result, just 1 percent of the nation's housing properties have sold this year, the lowest share in a decade. The number of homes for sale in the U.S. fell 15% from a year ago, hitting an all-time low in June, the biggest annual decline in two years.

'The U.S. housing market has become a system of winners and losers,'' Zhao said.''''The winners are homeowners who bought their homes before mortgage interest rates began to rise; they are still accumulating equity even though demand for home purchases has declined. Unfortunately, the losers are usually first-time homebuyers. They enter the market at a time when borrowing costs are high, home prices are near their all-time highs, and there are very few homes left to choose from.".