In an extraordinary leap, the US housing market’s total value surged by 5.3% in 2023, reaching a staggering $47.5 trillion. The Midwest and Northeast led the charge, showcasing significant market gains. Amid this growth, the real estate community is buzzing with anticipation for Inman Connect Las Vegas, happening July 30-Aug. 1, 2024. This pivotal event promises a fresh look at real estate’s future, bringing together top minds to forge new paths.

Even as home sales slowed, the market’s overall worth saw unprecedented growth, reports Redfin. From December 2022 to December 2023, the valuation of 90 million homes in the US climbed from $45.1 trillion to $47.5 trillion. The average home value also rose to $495,183 by year’s end, although this was a dip from peak values above $500,000 seen in previous quarters.

Chen Zhao of Redfin highlighted the robust position of American homeowners, who benefit from a wealth of housing equity despite a cooling demand. This resilience is attributed to a pandemic-induced value surge and a current shortage in supply, which keeps home values from declining. The Northeast and Midwest, in particular, experienced the most significant increases in home values.

Cities like Newark, New Haven, and Camden witnessed the highest year-over-year value gains, thanks to their relative affordability and attractiveness to buyers seeking value. The report underscores the growing demand for affordable housing in an environment of rising mortgage rates and home prices.

Conversely, traditionally expensive areas and cities that boomed during the pandemic saw either value declines or marginal increases. For example, Boise and New York faced downturns, while Philadelphia and Denver posted slight gains. This trend reflects a market correction where unaffordability limits demand and, consequently, value growth.

For potential buyers, the climb in housing market value presents challenges amid economic pressures. Zhao notes the tough road ahead for those aspiring to homeownership, marred by high rates, prices, and limited inventory. However, there’s a silver lining: mortgage rates are expected to decline by late 2024, offering a glimmer of hope for future buyers.