Household Real Estate Value Jumps in the Second Quarter

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The second quarter of 2023 release of the Z.1 Financial Accounts of the United States indicates that the market value of households’ real estate assets increased over the quarter. Low existing for-sale inventory helped to increase real estate value after falling for three consecutive quarters.

The level of households’ real estate assets increased by $2.43 trillion from $42.07 trillion in the first quarter of 2023 to $44.50 trillion in the second quarter of 2023, a 5.78% increase. This was the first quarter-over-quarter increase since the second quarter of 2022. The market value of owner-occupied real estate decreased 0.14% on a year-over-year basis from $44.56 trillion a year ago. This marked two consecutive quarters of year-over-year declines in the market value of real estate assets, the first occurrence since the second quarter of 2012.

Real estate secured liabilities of households’ balance sheets, i.e., mortgages, home equity loans, and HELOCs, increased over the second quarter from $12.76 trillion to $12.85 trillion, a 0.71% quarterly increase. Year-over-year, real estate liabilities have increased 4.14% from $12.34 trillion in the second quarter of 2022. The year-over-year growth of real estate liabilities has fallen from 9.96% in the first quarter of 2022 but remains positive.

Aggregate owners’ equity (i.e., the difference between homeowners’ real estate assets and liabilities) rose from $29.31 trillion to $31.65 trillion, representing 71.12% of all owner-occupied household real estate.



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  1. The jump in household real estate value mentioned in this article can impact construction loans positively. As property values rise, builders may have more collateral to leverage when applying for construction financing, potentially leading to more favorable loan terms and options for funding their projects.

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