Tight housing inventory has led to a steep increase in the appreciation of U.S. home values, and according to Insider, the share of million-dollar homes on the market is inching closer to a record high. A recent analysis from Redfin revealed that 8.2% of U.S. homes are worth $1 million or more, a share just below the record 8.6% posted in June 2022.
The total number of homes worth seven figures has doubled since before the pandemic, but it’s not just high-end homes that are becoming significantly more expensive, the total value of the U.S. housing market surged to a record high of $46.8 trillion in June, up from the previous all-time high of $46.6 trillion seen in 2022.
"The supply shortage is making many listings feel hot," Redfin economist Chen Zhao said. "In most of the country, expensive properties that are in good condition and priced fairly are attracting buyers and in some cases bidding wars, mostly because for-sale signs are few and far between right now."
It's possible, Zhao explained, that recent signals that point to a soft landing for the US economy have made high-end buyers more confident in making a big purchase, which suggests more demand could be on the way.
Advertisement
Related Stories
New-Home Sales
Mortgage Rates Are Up but New-Home Sales Still Solid in March
Lack of existing home inventory drove a rise in new-home sales, despite higher interest rates in March
Labor + Trade Relations
Who's Earning What in Construction
Workers in construction management roles may earn a higher median wage, but on average, lower-paid occupations have experienced somewhat faster wage growth
Build to Rent
Build-to-Rent Is Booming, Particularly in These Metros
A recent report finds that the Phoenix metro leads with more than 4,000 build-to-rent units completed in 2023, and Texas is the leading state for build-to-rent development
