For 124 consecutive months, spanning the bottom of the housing crash in February 2012 through the top of the Pandemic Housing Boom in June 2022, U.S. home prices posted positive month-over-month growth. That streak, of course, came to an abrupt end …
For 124 consecutive months, spanning the bottom of the housing crash in February 2012 through the top of the Pandemic Housing Boom in June 2022, U.S. home prices posted positive month-over-month growth. That streak, of course, came to an abrupt end last year as the Fed's inflation fight set off a correction in home prices.
On one hand, since their peak, national home prices have only fallen by a few percentage points through November, according to the seasonally adjusted Case-Shiller National Home Price Index. On the other hand, the ongoing housing correction is already starting to have a financial, and psychological, impact on homeowners.
On Wednesday, Redfin published a report finding that the total value of U.S. homes has fallen $2.3 trillion since the start of the home price correction.
"The total value of U.S. 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. That’s the largest June-to-December drop in percentage terms since 2008," writes Redfin researchers.
Let's be clear: While there's certainly a home price correction rolling through many markets nationwide, most homeowners are still up big-time since the pandemic's onset.
"The housing market has shed some of its value, but most homeowners will still reap big rewards from the Pandemic Housing Boom," Redfin researchers said in the report. "The total value of U.S. homes remains roughly $13 trillion higher than it was in February 2020, the month before the coronavirus was declared a pandemic."
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