Home Values Skyrocket: US housing market achieves historic $47 trillion milestone

Posted on August 18, 2023   |  

The US housing market achieved an unprecedented milestone, reaching a remarkable valuation of $47 trillion, surpassing the previous record of $46.6 trillion.

The surge in home values is primarily attributed to a scarcity of available homes in the market, the shortage has been a key factor in driving up housing prices.

In June, home values in the US registered a 0.4% increase compared to the previous year, marking a substantial 19.1% rise over two years.

Notably, the housing market has effectively rebounded from a $2.9 trillion decline in value experienced between June 2022 and February 2023, which was a consequence of rising mortgage rates.

The prevalence of the 30-year fixed-rate mortgage in the US has significantly influenced the stability of home values.

Many homeowners secured highly favorable mortgage rates of around 3% during the pandemic, tied to their 30-year loan period.