By Jesse Wade on March 10, 2023 • The most recent release of the Z.1 Financial Accounts of the United States shows a decrease in the value of households’ real estate assets over the fourth quarter of 2022. As home prices begin to decrease from pandemic highs, households’ real estate asset value fell for the first time since the first quarter of 2012. The level of households’ real estate assets decreased by $0.07 trillion from $43.57 trillion in the third quarter of 2022 to $43.50 trillion in the fourth quarter of 2022. The market value of owner-occupied real estate increased 10.77% on a year-over-year basis from $39.27 trillion in the fourth quarter of 2021. Real estate secured liabilities of households’ balance sheets, i.e., mortgages, home equity loans, and HELOCs, increased over the fourth quarter from $12.36 trillion to $12.52 trillion, a 1.25% quarterly increase. Year-over-year, real estate liabilities increased 6.48% from $11.75 trillion in the fourth quarter of 2021. The year-over-year growth of real estate liabilities has decelerated for two consecutive quarters as home sales have slowed down across the country. Aggregate owners’ equity (i.e., the difference between homeowners’ real estate assets and liabilities) fell from $31.21 trillion to $30.98 trillion, representing 71.22% of all owner-occupied household real estate. Related ‹ Cost of Constructing a Home in 2022Tags: home equity, homeowner equity, household balance sheets, household debt, market value, mortgage debt, residential real estate

By Jesse Wade on December 12, 2022 • The most recent release of the Z.1 Financial Accounts of the United States shows a sharp slowdown in the quarter-over-quarter growth of households’ real estate assets. After six consecutive quarters of above 3 percent growth quarter-over-quarter, the third quarter of 2022 saw a 1.74% increase in households’ real estate asset value. The level of households’ real estate assets increased by $0.72 trillion from $41.19 trillion in the second quarter of 2022 to $41.91 trillion in the third quarter of 2022. The market value of owner-occupied real estate increased 13.82% on a year-over-year basis from $36.82 trillion in the third quarter of 2021.  The slowdown in growth of real estate assets coincides with the housing market correction as housing prices adjust across the U.S. Real estate secured liabilities of households’ balance sheets, i.e., mortgages, home equity loans, and HELOCs, increased over the third quarter from $12.15 trillion to $12.35 trillion, a 1.73% quarterly increase. Year-over-year, real estate liabilities increased 7.43% from $11.50 trillion in the third quarter of 2021. This was the fourth consecutive year-over-year percentage increase above 7 percent. The year-over-year growth of real estate liabilities has steadily been accelerating over the past 3 years, from 2.59% in the third quarter of 2019 (Pre-Pandemic) to now above 7 percent for the past 4 quarters. Aggregate owners’ equity (i.e., the difference between homeowners’ real estate assets and liabilities) rose from $29.05 trillion to $29.56 trillion, representing 70.52% of all owner-occupied household real estate. Related ‹ Concrete Prices, Volatility Continue Torrid Pace as Lumber NormalizesTags: home equity, homeowner equity, household balance sheets, household debt, market value, mortgage debt, residential real estate