New figures from Redfin show the US housing market has lost 4.9 per cent, or US$2.3 trillion, in value since its peak in June last year.
The figures, which are based on Redfin Estimates, represented the largest six-month fall recorded since the Global Financial Crisis.
The Bay Area in California had lost more value in percentage terms than any other market, Redfin reported.
On a 12-month basis, San Francisco value fell 6.7 per cent, Oakland fell 4.5 per cent, and San Jose dropped 3.2 per cent.
Other major centres experiencing a downturn on an annual basis included New York (down 1 per cent), Seattle (down 0.4 per cent) and Boise, Idaho (down 0.3 per cent).
At the other end of the spectrum, values in Florida have held up well.
The total value of homes in Miami was up 19.7 per cent on an annual basis to sit at $468.5 billion in December – the largest annual increase of the areas analysed by Redfin.
Values in Miami remained close to peak levels.
Redfin Economics Research Lead Chen Zhao said it was important to keep the value declines in perspective.
“The housing market has shed some of its value, but most homeowners will still reap big rewards from the pandemic housing boom,” he said.
“The total value of US homes remains roughly US$13 trillion higher than it was in February 2020, the month before the Coronavirus was declared a pandemic.”
The Redfin figures come as separate data from the Mortgage Bankers Association showed applications for new mortgages in the US sitting at a 28-year low.
Mortgage applications were down 44 per cent from a year prior, according to the Association.
The average interest rate for a home loan in the US is currently 6.71 per cent (assuming a 20 per cent deposit).