Total Value of US Homes Reaches Record High of $49.6 Trillion

On Thursday, Redfin reported that according to its data, the total value of US homes gained $3.1 trillion over the past 12 months to reach a record $49.6 trillion.

In percentage terms, the total value of the US housing market grew 6.6% year-over-year. Looking out further, the total value of US homes has more than doubled in the past decade, climbing nearly 120% from $22.7 trillion in June 2014.

New construction was another factor driving the overall increase in market valuation. Redfin’s analysis examined the Redfin Estimate for roughly 97.6 million homes, compared to 96.8 million homes a year earlier.

Redfin notes that the number of metros where the total value of homes topped $1 trillion grew to eight—doubling from four a year ago—with Anaheim, CA, Chicago, Phoenix, and Washington, DC, joining New York, Los Angeles, Atlanta, and Boston in the trillion-dollar club. San Diego and Seattle look like they will join them in the next 12 months if home values keep increasing at a similar pace

Adding background and analysis to the report, Redfin Economics Research Lead Chen Zhao said:

“The value of America’s housing market will likely cross the $50 trillion threshold in the next 12 months as there are not enough homes being listed to push prices down. Mortgage rates have started falling, but many potential sellers and buyers are waiting to make a move, meaning we are likely to continue seeing a pattern where prices slowly tick up. That’s great news for the millions of American homeowners who see their equity rising, but first-time buyers are going to keep finding it tough to find an affordable home.”