U.S. real estate: Homeowner losses - $2.3 trillion since June, Redfin data. | Blog

U.S. real estate: Homeowner losses - $2.3 trillion since June, Redfin data.

buyers.

As a result, Americans have become more reluctant to purchase homes and home prices have fallen. The average sale price of U.S. homes in January was $383,249, up just 1.5 percent from a year earlier.

Redfin highlighted the Bay Area, noting that the area had the largest decline in real estate values compared to other parts of the country. For example, the total value of homes in San Francisco fell 6.7 percent in December to $517.5 billion, a decline of $37.3 billion from a year earlier.

"Three of my real estate listings recently went into contract after sitting on the market for more than a month," said Ali Mafi, a Redfin Realtor in San Francisco mentioned in the note. "They''There were fall showings for a while, but no buyer wanted to make a deal. And suddenly in the new year, every property had 10 or 15 people at viewings. "

In the meantime, the report notes, Florida's real estate market remains stable, with the largest increase in property values compared to other parts of the country. The total value of Miami homes rose 19.7 percent ($77 billion) to $468.5 billion in December.

"Florida's real estate market is supported by people moving from the North and, more recently, the West Coast," said Elena Fleck, a Florida realtor mentioned in the report. "People are moving in droves from New Jersey and New York, mainly because Florida has relatively affordable housing and no income tax.

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For their''money they get a lot more'.

The report notes that U.S. cities are doing much worse than suburbs. While the value of urban homes increased 2.5% to $10.8 trillion from a year earlier, the value of homes in the suburbs rose 6.4% to $25.4 trillion in December.

While some experts see "armageddon" in the overall real estate market, others believe the most difficult period for the market is behind us, pointing to data that shows the market is showing signs of recovery. For example, confidence among single-family home builders rose in January for the first time in more than a year, according to a report from the National Association of Home Builders/Wells Fargo. In addition, indicators of pending home sales increased 2.5% in''December, marking the end of a six-month decline.

"The real estate market has lost some of its value, but most homeowners will still benefit greatly from the pandemic-induced boom in the market. The total value of U.S. residential homes remains about $13 trillion higher than it was in February 2020, the month before the coronavirus was declared a pandemic," said Chen Zhao, chief economics researcher at Redfin, in a report.

"Unfortunately, many people were left behind. Many Americans did not have enough money to buy a home even as mortgage rates hit their lowest levels in 2021, meaning they missed out on significant opportunities to accumulate wealth," Zhao added.