A recent real estate report from Redfin revealed that US home values saw their biggest drop in 15 years, falling by $2.3 trillion in the 2nd half of 2022. . Redfin had noted that the decline in home value is mostly attributable to rising mortgage rates.

In the second half of 2022, San Francisco (-6.7%), Oakland (-4.5%), and San Jose (-4.5%) saw the biggest fall in property values. On the other hand, there were still places that experienced home value increases. Metro areas that recorded the biggest uptick in numbers include Miami (+19.7%), North Port-Sarasota, Florida (+17.8%), Knoxville, Tennessee (+17.7%), Charleston, South Carolina (+17.4%), and Lakeland, Florida (+16.9%).

CBS News reported:

Home values are sliding now largely because climbing mortgage rates have pushed buyers out of the market, Redfin said. Boise, Idaho, Seattle and California’s Bay Area — all regions that saw blazing hot housing markets two years ago as the pandemic flared — are now experiencing the nation’s sharpest declines.

Redfin’s data lands just as the nation is gearing up for the spring homebuying season. Mortgage rates have nearly doubled from a year ago, growing to 6.5% this month compared to 3.5% a year ago. The median home sale price grew to $383,249 in January, up 1.5% from a year ago, Redfin said.

Realtors said they expect 2023 to look markedly different from what buyers experienced last year when median home prices reached record highs and mortgage rates at one point reached as high as 7%.

Buyers these days have grown accustomed to the higher interest rates and sellers are starting to lower their prices, Wall Street Journal reporter Veronica Dagher told CBS News.