US Housing Market Gained $2.4 Trillion in Value Year-Over-Year in December

On Wednesday, Redfin reported that based on its analysis of more than 90 million US residential properties, as of December 2023, the US housing market gained $2.4 trillion in value over the last year, bringing its total value to $47.5 trillion.

In percentage terms, the total value of US homes increased 5.3% year-over-year—the biggest increase in 11 months—and was up 13.3%, or $5.6 trillion, from two years earlier.

Redfin notes that the average US home was valued at $495,183 in December, up from $474,740 a year earlier. The average home value jumped past $500,000 in both the summer of 2023 and the summer of 2022, meaning the typical homeowner who bought during those times has lost value.

In remarks accompanying the report, Redfin Economics Research Lead Chen Zhao said:

“America’s homeowners are sitting pretty. They’re holding a massive amount of housing wealth, despite lackluster demand from buyers, because home values skyrocketed during the pandemic and now a supply shortage is preventing those values from falling. Prospective buyers aren’t as lucky. The combination of elevated mortgage rates, high home prices and a limited pool of homes for sale means homeownership is about as unaffordable as ever. One bright spot for buyers is that mortgage rates should start declining before the end of 2024.”