The Second Quarter of 2021 Sees a Rise in Real Estate Market Values
According to the “Flow of Funds” from the current Federal Reserve Z.1 Financial Accounts of the United States the aggregate market value of all owner-occupied real estate in the United States saw the largest increase in one quarter in the last 21 years. $33.8 trillion was reported in the first quarter of 2021 and rose by $1.1 trillion in the second quarter.
The Federal Reserve Z.1 Financial Accounts used to be known as the Flow of Funds accounts. This is a collection of financial accounts where the data is taken from them to see what funds are being used by whom. Basically, it is a way to track the net money going in and money coming out from several sectors of the US economy.
Due to lack of housing inventory, home prices are the highest we have seen in a while. Home mortgages also have jumped to $11.3 trillion which was a rise of $220 billion. Real estate assets are increasing faster than real estate liabilities. The Mortgage Bankers Association (MBA) reported as of September 12, indicates a forbearance rate of 3%.
The second quarter of 2021 saw a 12% year over year of appreciation of the market value of all real estate assets. Aggregate owners’ equity also jumped to $23.6 trillion which was 68% of all household real estate, making it the highest seen since 1989.
