The housing market posted its biggest drop since 2008, but it’s still up

The total value of US homes declined by $2.3T in the second half of 2022.

That 4.9% dip from a record high of $47.7T in June represents the largest drop since the Great Recession, according to real estate brokerage Redfin, which analyzed 99m+ properties.

Homebuyer demand has been sluggish, partially the result of the Federal Reserve’s inflation-fighting efforts roughly doubling mortgage rates since early 2022, making it harder to afford a home.

• In January, the median US home sales price was $383.2k, down from a record high of $433.1k last May.

Despite the drop, the total value of US homes in December was actually up 6.5% YoY, ~$13T higher than it was in early 2020.

The list of metro area housing markets with YoY percentage dips through December is short and led by San Francisco, which notched declines of 6.7% to $517.5B.

• Its neighbor across the bay, Oakland, came in second at 4.5%. San Jose, New York, Seattle, and Boise, are the only other metros that saw YoY declines.

The good news, if you’re looking to buy a house in San Fran, is that the area’s median home sale price in January dropped 9.4% YoY… to $1.3m.