What is the average home value in the US in 2023?
The value of homes across the US rose significantly over the past couple of years and despite interest rates climbing prices have stayed quite high.
Those who were able to take advantage of ultra-low mortgage rates in 2020 and even into 2021 must be feeling pretty good seeing how the market has developed since. When the covid-19 pandemic plunged the US and the world into an economic crisis, the Federal Reserve took swift action to stave off a complete collapse.
That provided the conditions for mortgage rates to drop to historic lows below 3 percent. Americans didn’t sit on their laurels and went on a shopping spree to not just change the roof over their head but the location of where they wanted to reside.
However, the frenzy led to bidding wars to snap up houses from a supply that was already limited, driving prices up at a blistering pace. Between the onset of the pandemic and the end of 2022 the median sale price of houses in the United States rose nearly 50 percent according to Federal Reserve Bank of St. Louis data.
Nowadays though, many would-be homebuyers have been pushed out of the housing market as mortgage rates have soared to the range of 8 percent for a 30-year fixed rate. Homeowners who locked in rates around 3 percent are loathe to sell, keeping the supply low and propping up prices with active demand weak.
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What is the average home value in the US in 2023?
The national media has retreated and is about 10 percent lower than at its peak, currently sitting at $431,000. The average sales price of houses sold in the United States has dropped by around 7 percent to $513,400 in the third quarter of 2023 from $552,600 in the fourth quarter of 2022.
Based on data through September 2023, the average US home value though is $348,539 according to Zillow.
But prices vary across the nation with some markets having experienced steeper drops while others still gaining in value. Below is a look at the variation of median home values by county across the nation according to data collected by the National Realtors Association.
