According to an article in aol.com, the total combined value of all the homes in the United States is in excess of $25 trillion. The value has been worked out by Zillow.
By the end of this year the total value of all the homes in the US is estimated to be approximately $25.7 trillion. This is an increase of nearly $1.9 trillion compared to the end of last year, equating to 7.9%. Zillow calculated these price gains through taking the total amount of cumulative home values at the end of last year and measuring the difference with the predicted total amount of cumulative home values for the end of this year.
This increase in the cumulative home values for 2013 marks the second consecutive year of price gains. Before this home values had fallen for each year between 2007 and 2011. Between these years the total value of housing stock in the United States dropped by $6.3 trillion. Over the past couple of years values have increased by $2.8 trillion, but even so this is just 44% of the values lost during the housing crisis.
According to the chief economist of Zillow, Stan Humphries, positive momentum in the property market began to increase last year, and this year the housing market has continued to build on this growth having finally bottomed out. Improvements in the economy combined with continued low mortgage rates has helped to bring new buyers into the property market, and as a result demand has increased which has driven up home prices. Stan Humphries is confident these gains will continue into 2014, although he does anticipate they will slow. This is due to the fact that the housing market has bounced back strongly, but now is heading towards more sustainable growth. Price growth of between 3% and 5% is being anticipated for next year and this is much closer to the historic norms in the market.
The total value of the housing stock in the United States does sound a lot, and put it into perspective it’s worth more than the combined GDP for the United States and for China last year. Some of the largest housing markets in the US are incredibly valuable, as the combined value of property in Los Angeles and New York is worth more than $4 trillion. Other real estate markets that are worth a lot of money include Washington DC which is projected to be worth $890.3 billion by the end of the year, Chicago with a projected value of $687.5 billion, Philadelphia at $540.5 billion, Dallas Fort Worth at $339.5 billion, and Houston at $307.2 billion.