The American dream of owning a home just became more elusive for many, as the U.S. housing market swelled in value by a staggering $2.4 trillion over the past year, bringing the total market value to a record $47.5 trillion. This eye-opening figure was reported by Seattle-based Redfin, with the data reflecting the staggering worth of over 90 million residential properties across the nation, as reported by KATU News.
The uptick in value has led to limited options for those shopping for homes, with 40% fewer listings available now than in 2019. Chief Economist Ali Wolf from Zonda underscored the scarcity, stating, "If you look at national listings across the U.S., we have 40% fewer listings today than we had in 2019. So if you're trying to shop for a house, don't think that you're going to be flush with options," in a statement obtained by ABC St. Louis.
Some areas are bearing the brunt of these increases more than others. Cities in the Northeast and Midwest are witnessing the largest price surges. Yet the trend is not confined to urban locales; suburban residential properties have experienced a more significant valuation jump, according to data shared by KOMO News.
The Pacific Northwest is a prime example of this market trend, with Seattle's entire housing market now valued at over $911 billion, a 4.6% increase from the previous year. Tacoma, Seattle's neighbor, has seen an even more pronounced jump, with property values shooting up by 5.6%. "What we are seeing in the housing market is right now we are living through a record housing affordability shock," Zonda indicated in their report. Even if mortgage rates may see a decline, potential homebuyers are still tangled in an environment of sparse inventory, limiting their choices and challenging their budgets.
