After months of waning homebuyer demand, the total value of U.S. homes at the end of 2022 was down 4.9% ($2.3 trillion) from June’s record high of $47.7 trillion to $45.3 trillion in December. Though U.S. home values were up 6.5% from a year earlier in December, the median U.S. home sale price was $383,249 in January, down 11.5% from a May peak of $433,133 and up just 1.5% from January 2022, Redfin reports.
San Francisco took the biggest hit to regional home values with a 6.7% year-over-year decline to $517.5 billion in December, a $37.3 billion drop, and the Golden Gate City was followed by two other Bay Area metros: Oakland (-4.5%) and San Jose (-3.2%).
Pricey coastal tech hubs have experienced outsized declines in home values for a few reasons:
- They are among the most expensive markets in the country, which means home values had more room to fall.
- They have seen an exodus of residents during the pandemic because people prioritized space and affordability over proximity to the workplace.
- They were hit hard by tech layoffs and are home to many residents with significant investments in the stock market, which just had its worst year since 2008. (It’s worth noting that many laid-off tech workers are finding new jobs quickly.)
Advertisement
Related Stories
Housing Markets
Metros Where Housing Prices Have Doubled in Less Than 10 Years
Historical data show it's taken less than 10 years for home prices to double in 68 of the country’s 100 largest cities
Affordability
The Disappearing Act That Is Middle-Income Housing
An expert weighs in on the diminishing supply of middle-income housing, which is particularly acute in California, and what to do about it
Market Data + Trends
A Look at Homeownership Rates Across the Nation
Data for homeownership rates in the 100 largest US cities show Port St. Lucie, Fla., in the top spot, while West Virginia is the state with the most homeowners