{"id":44,"date":"2023-02-24T05:02:54","date_gmt":"2023-02-24T11:02:54","guid":{"rendered":"https:\/\/enjoyingthisjourney.com\/u-s-housing-market-sees-record-drop-in-value-and-investor-purchases-in-2022\/"},"modified":"2023-02-24T05:02:54","modified_gmt":"2023-02-24T11:02:54","slug":"u-s-housing-market-sees-record-drop-in-value-and-investor-purchases-in-2022","status":"publish","type":"post","link":"https:\/\/enjoyingthisjourney.com\/u-s-housing-market-sees-record-drop-in-value-and-investor-purchases-in-2022\/","title":{"rendered":"U.S. Housing Market Sees Record Drop in Value and Investor Purchases in 2022"},"content":{"rendered":"

It\u2019s been a tumultuous year for the U.S. housing market. According to a report from real estate brokerage firm Redfin, the total value of U.S. homes tumbled from a record high of $47.7 trillion in June 2022 to $45.3 trillion at the end of the year \u2014 a decline of $2.3 trillion, or 4.9%.[0]<\/a><\/sup> This marks the largest June-to-December drop in percentage terms since 2008\u2019s housing crisis, when home values slumped by 5.8%.[1]<\/a><\/sup><\/p>\n

Rising mortgage rates have made buying a home more costly, which is one of the primary causes of the decrease in homebuyer demand.[2]<\/a><\/sup> In December, the average 30-year fixed mortgage rate was 6.36%, a figure that has doubled since the beginning of 2022.[3]<\/a><\/sup> Rates dropped in the early part of February, but have since risen back to their December state.[4]<\/a><\/sup><\/p>\n

In the fourth quarter, year-over-year purchases of single-family homes by investors dropped a record-setting 49.8%, exceeding any other type of property.[5]<\/a><\/sup> Purchases of condos\/co-ops by investors dropped 35.6% while acquisitions of townhouses and multi-family properties both decreased by 31.1%.[6]<\/a><\/sup><\/p>\n

Roughly one-third (31.2%) of home purchases were paid for with all cash in December, according to a new report from Redfin.[7]<\/a><\/sup> The percentage had risen from 28.8% in the previous year, yet it was lower than the peak of 31.9% observed in November, the highest in[8]<\/a><\/sup><\/p>\n

A report revealed that in 56% of Opportunity Zones in the U.S., the median prices of single-family homes and condos decreased from the third to the fourth quarter of 2022, and decreased by at least 5% in nearly half of these zones.[9]<\/a><\/sup> Declines in the zones closely matched those in other neighborhoods as home prices dropped throughout the US during the latter half of 2022, following a decade of steady expansion.[9]<\/a><\/sup><\/p>\n

The total value of homes in Miami increased by 19.7% to $468.5 billion in December compared to the previous year ($77 billion), making it the metro area with the greatest annual increase in percentage terms according to Redfin analysis.[10]<\/a><\/sup> In December, Miami's housing market was valued at approximately $472 billion, which was the same as when it reached its highest point in July.[3]<\/a><\/sup><\/p>\n

0. <\/span>“US housing market sees $2.3T drop in value, biggest since 2008” Fox Business, 23 Feb. 2023, https:\/\/www.foxbusiness.com\/economy\/us-housing-market-sees-drop-value-biggest-2008<\/a><\/p>\n

1. <\/span>“US Housing Market Posts $2.3 Trillion Drop, Biggest Since 2008” Bloomberg, 22 Feb. 2023, https:\/\/www.bloomberg.com\/news\/articles\/2023-02-22\/us-housing-market-posts-2-3-trillion-drop-biggest-since-2008<\/a><\/p>\n

2. <\/span>“U.S. home values slump by $2.3T since June peak, Redfin says (NASDAQ:RDFN)” Seeking Alpha, 22 Feb. 2023, https:\/\/seekingalpha.com\/news\/3939136-us-home-values-slump-by-23t-since-june-peak-redfin-says<\/a><\/p>\n

3. <\/span>“Redfin: $2.3T In Home Values Lost In 2nd Half Of '22” National Mortgage Professional, 22 Feb. 2023, https:\/\/nationalmortgageprofessional.com\/news\/redfin-23t-home-values-lost-2nd-half-22<\/a><\/p>\n

4. <\/span>“Suburban Housing Markets Faring Better Than Cities” DSNews.com, 22 Feb. 2023, https:\/\/dsnews.com\/news\/02-22-2023\/suburban-housing-markets<\/a><\/p>\n

5. <\/span>“Investors Are Buying Roughly Half as Many Homes as They Were a Year Ago” Redfin News , 15 Feb. 2023, https:\/\/www.redfin.com\/news\/investor-home-purchases-q4-2022\/<\/a><\/p>\n

6. <\/span>“Investors Purchases of Single-Family Homes Drops By Almost Half” Route Fifty, 17 Feb. 2023, https:\/\/www.route-fifty.com\/infrastructure\/2023\/02\/investors-purchases-single-family-homes-drops-almost-half\/383128\/<\/a><\/p>\n

7. <\/span>“Where Cash Is King: 10 Cities With the Highest Share of All-Cash Home Sales” Money, 17 Feb. 2023, https:\/\/money.com\/cities-most-cash-home-sales<\/a><\/p>\n

8. <\/span>“Redfin Reports Share of Homes Bought With Cash Ticks Down From November Peak” Business Wire, 15 Feb. 2023, https:\/\/www.businesswire.com\/news\/home\/20230215005284\/en\/Redfin-Reports-Share-of-Homes-Bought-With-Cash-Ticks-Down-From-November-Peak<\/a><\/p>\n

9. <\/span>“HOME PRICES IN OPPORTUNITY ZONE REDEVELOPMENT AREAS FALL DURING FOURTH QUARTER” PR Newswire, 16 Feb. 2023, https:\/\/www.prnewswire.com\/news-releases\/home-prices-in-opportunity-zone-redevelopment-areas-fall-during-fourth-quarter-301748422.html<\/a><\/p>\n

10. <\/span>“Real estate: US homeowners have lost $2.3 trillion since June: Redfin data” Yahoo News, 22 Feb. 2023, https:\/\/news.yahoo.com\/real-estate-us-homeowners-have-lost-23-trillion-since-june-redfin-data-194008081.html<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

It\u2019s been a tumultuous year for the U.S. housing market. According to a report from real estate brokerage firm Redfin, the total value of U.S. homes tumbled from a record high of $47.7 trillion in June 2022 to $45.3 trillion at the end of the year \u2014 a decline of $2.3 trillion, or 4.9%.[0] This […]<\/p>\n","protected":false},"author":2,"featured_media":43,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/posts\/44"}],"collection":[{"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/comments?post=44"}],"version-history":[{"count":0,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/posts\/44\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/media\/43"}],"wp:attachment":[{"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/media?parent=44"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/categories?post=44"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/tags?post=44"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}