After soaring to 8.6% in June 2022, the total share of million-dollar-plus homes is declining as higher mortgage rates accelerate a market correction. Just over 7% of homes in the U.S. are worth $1 million or more, and while that share is down from the 2022 peak, it’s still well above the pre-pandemic supply of million-dollar homes.
Today’s 6.6% mortgage rates mean that a buyer who made a 20% down payment on an $800,000 home would now pay $5,241 per month compared with a $5,034 monthly payment for a $1 million home at the 3.5% rates common in early 2022, Forbes reports.
The share of homes valued at seven figures is falling quickest in the Bay Area and other expensive coastal areas. Just over 80% of San Francisco homes are worth at least $1 million–the biggest share of the 99 most populous U.S. metros, but down from 86.3% a year ago.
Oakland, California, where 44.8% of homes are worth $1 million or more, down from 50% a year ago, experienced the next-biggest decline. It’s followed by Seattle (27.5%, down from 30.9%), New York (29.5%, down from 32.5%) and San Jose, California (79.2%, down from 81.7%).
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