SEATTLE, Feb. 22, 2018 /PRNewswire/ -- Home value
growth across the country is increasing at the slowest pace in 15
months, according to the January Zillow® Real Estate Market
Reporti. Over the past year, home values rose 6.7
percent to a median home value of $207,600.
In May 2017, national home values
were rising at their fastest pace since the housing bubble, up 7.6
percent year-over-year, but have since slowed, dropping about a
tenth of a percentage point each month since last summer.
While home value growth is slowing, mortgage rates are picking
up, ending the month of January at 4.04 percentii -- the
highest rate in four yearsiii. Going into the spring
home shopping season, buyers may find a slight relief on prices,
but should expect higher mortgage rates to lead to an increase in
monthly costs.
"The pace of home value appreciation we experienced during much
of last year was not sustainable, and a slow glide path down to a
more normal appreciation rate has been expected for some time,"
said Zillow Senior Economist Aaron
Terrazas. "This slowdown is nothing to be overly concerned
with -- demand from home buyers remains very high, and inventory
remains tight. New home construction is growing, providing some
relief to buyers who can afford the generally high price point of
new homes. It's important to note that home values are still
growing very quickly relative to historic norms. After years of
intense competition, some buyers may be more willing than
previously to take more time with the process and to wait until the
right home at the right price comes on the market, even if it's not
for several months. Removing a lot of this frenzy, especially as
inventory remains incredibly tight, may prove to be good news for
beleaguered buyers."
Markets with the greatest home value appreciation are in the
West -- San Jose, California,
Las Vegas and Seattle reported the greatest home value
growth over the past year. In San
Jose, home values rose about 23 percent – about three times
faster than its historic pace – to a median home value of
$1,202,900.
Tight inventory will put a strain on buyers this home shopping
season, even more so than last year. There are almost 10 percent
fewer homes on the market than a year ago, with San Jose, Las
Vegas and Indianapolis
reporting the greatest drop in inventory. New home starts have
increased about 7 percent over the past year, a positive trend but
still insufficient to meet demand.
Median rent across the nation rose 2.6 percent since last
January, to a median payment of $1,441 per month. Sacramento, California, Riverside, California and Seattle reported the highest year-over-year
rent appreciation among the 35 largest U.S. housing
markets. Median rent in Sacramento rose just over 8 percent to a
Zillow Rent Indexiv (ZRI) of $1,845. Rent in Riverside rose 6 percent year-over-year, and
rent in Seattle rose 5
percent.
Mortgage ratesv on Zillow gradually increased
throughout the month of January, starting at 3.77 percent and
ending at 4.04 percent, the month high. Zillow's
real-time mortgage rates are based on thousands of custom
mortgage quotes submitted daily to anonymous borrowers on the
Zillow Mortgages site and reflect the most recent changes in the
market.
Metropolitan
Area
|
Zillow Home
Value Indexvi (ZHVI)
|
ZHVI Year-
Over-Year
Change
|
Zillow Rent
Indexvii (ZRI)
|
ZRI Year-
Over-Year
Change
|
Year-Over-Year
Inventory Change
|
United
States
|
$
207,600
|
6.7%
|
$
1,441
|
2.6%
|
-9.7%
|
New York,
NY
|
$
431,100
|
6.7%
|
$
2,403
|
0.6%
|
-14.6%
|
Los Angeles-Long
Beach-Anaheim, CA
|
$
636,500
|
6.8%
|
$
2,738
|
3.9%
|
-17.2%
|
Chicago,
IL
|
$
214,700
|
4.1%
|
$
1,651
|
1.5%
|
-10.4%
|
Dallas-Fort Worth,
TX
|
$
220,900
|
9.2%
|
$
1,604
|
2.7%
|
13.9%
|
Philadelphia,
PA
|
$
224,700
|
4.9%
|
$
1,579
|
0.6%
|
-10.6%
|
Houston,
TX
|
$
186,800
|
6.6%
|
$
1,549
|
0.2%
|
1.5%
|
Washington,
DC
|
$
387,200
|
1.7%
|
$
2,141
|
1.2%
|
15.0%
|
Miami-Fort
Lauderdale, FL
|
$
264,200
|
7.0%
|
$
1,858
|
0.1%
|
-2.5%
|
Atlanta,
GA
|
$
187,600
|
7.7%
|
$
1,391
|
4.4%
|
-14.1%
|
Boston, MA
|
$
441,800
|
6.8%
|
$
2,370
|
1.4%
|
-13.2%
|
San Francisco,
CA
|
$
923,700
|
10.2%
|
$
3,404
|
1.5%
|
-16.1%
|
Detroit,
MI
|
$
145,000
|
6.6%
|
$
1,198
|
2.5%
|
-12.7%
|
Riverside,
CA
|
$
343,600
|
7.4%
|
$
1,861
|
6.3%
|
-13.8%
|
Phoenix,
AZ
|
$
246,800
|
6.6%
|
$
1,356
|
3.8%
|
-13.5%
|
Seattle,
WA
|
$
472,900
|
13.0%
|
$
2,203
|
5.1%
|
-19.3%
|
Minneapolis-St Paul,
MN
|
$
250,000
|
5.0%
|
$
1,635
|
4.5%
|
-9.0%
|
San Diego,
CA
|
$
571,600
|
8.3%
|
$
2,546
|
4.0%
|
-13.9%
|
St. Louis,
MO
|
$
151,900
|
1.4%
|
$
1,144
|
1.3%
|
-9.7%
|
Tampa, FL
|
$
195,200
|
7.9%
|
$
1,362
|
1.3%
|
-10.8%
|
Baltimore,
MD
|
$
261,400
|
1.6%
|
$
1,739
|
0.9%
|
0.5%
|
Denver, CO
|
$
384,300
|
7.4%
|
$
2,042
|
2.3%
|
-19.1%
|
Pittsburgh,
PA
|
$
138,200
|
3.8%
|
$
1,054
|
-1.5%
|
-12.8%
|
Portland,
OR
|
$
376,300
|
5.7%
|
n/a
|
n/a
|
2.0%
|
Charlotte,
NC
|
$
184,600
|
9.6%
|
$
1,294
|
3.8%
|
0.7%
|
Sacramento,
CA
|
$
385,100
|
8.3%
|
$
1,845
|
8.3%
|
-17.9%
|
San Antonio,
TX
|
$
169,300
|
7.4%
|
$
1,344
|
1.7%
|
5.9%
|
Orlando,
FL
|
$
216,100
|
7.6%
|
$
1,415
|
1.7%
|
-12.4%
|
Cincinnati,
OH
|
$
156,800
|
5.0%
|
$
1,279
|
2.2%
|
-8.9%
|
Cleveland,
OH
|
$
137,600
|
5.1%
|
$
1,145
|
0.4%
|
-13.1%
|
Kansas City,
MO
|
$
167,400
|
8.8%
|
$
1,280
|
2.5%
|
4.6%
|
Las Vegas,
NV
|
$
249,000
|
14.3%
|
$
1,297
|
4.2%
|
-23.7%
|
Columbus,
OH
|
$
174,100
|
7.9%
|
$
1,317
|
1.9%
|
-21.3%
|
Indianapolis,
IN
|
$
143,200
|
5.2%
|
$
1,209
|
2.1%
|
-22.1%
|
San Jose,
CA
|
$
1,202,900
|
22.9%
|
$
3,506
|
1.6%
|
-28.2%
|
Austin, TX
|
$
281,500
|
6.8%
|
$
1,686
|
-0.5%
|
0.7%
|
Zillow
Zillow is the leading real estate and rental marketplace
dedicated to empowering consumers with data, inspiration and
knowledge around the place they call home, and connecting them with
the best local professionals who can help. In addition, Zillow
operates an industry-leading economics and analytics bureau led by
Zillow's Chief Economist Dr. Svenja
Gudell. Dr. Gudell and her team of economists and data
analysts produce extensive housing data and research covering more
than 450 markets at Zillow Real Estate Research. Zillow also
sponsors the quarterly Zillow Home Price Expectations Survey, which
asks more than 100 leading economists, real estate experts and
investment and market strategists to predict the path of the Zillow
Home Value Index over the next five years. Launched in 2006, Zillow
is owned and operated by Zillow Group, Inc. (NASDAQ:Z and ZG), and
headquartered in Seattle.
Zillow is a registered trademark of Zillow, Inc.
i The Zillow Real Estate Market Reports are a monthly
overview of the national and local real estate markets. The reports
are compiled by Zillow Real Estate Research. For more information,
visit www.zillow.com/research/. The data in Zillow's Real Estate
Market Reports are aggregated from public sources by a number of
data providers for 928 metropolitan and micropolitan areas dating
back to 1996. Mortgage and home loan data are typically recorded in
each county and publicly available through a county recorder's
office. All current monthly data at the national, state, metro,
city, ZIP code and neighborhood level can be accessed at
www.zillow.com/local-info/ and www.zillow.com/research/data.
ii Mortgage rates on Zillow.
iii Mortgage rates have increased further through the
first three weeks of February. They are about 30 basis points
higher than January month-end.
iv The Zillow Rent Index (ZRI) is the median Rent
Zestimate® (estimated monthly rental price) for a given geographic
area on a given day, and includes the value of all single-family
residences, condominiums, cooperatives and apartments in Zillow's
database, regardless of whether they are currently listed for rent.
It is expressed in dollars.
v Mortgage rates for a 30-year fixed mortgage.
vi The Zillow Home Value Index (ZHVI) is the median
estimated home value for a given geographic area on a given day and
includes the value of all single-family residences, condominiums
and cooperatives, regardless of whether they sold within a given
period. It is expressed in dollars, and seasonally adjusted.
vii The Zillow Rent Index (ZRI) is the median Rent
Zestimate® (estimated monthly rental price) for a given geographic
area on a given day, and includes the value of all single-family
residences, condominiums, cooperatives and apartments in Zillow's
database, regardless of whether they are currently listed for rent.
It is expressed in dollars.
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SOURCE Zillow, Inc.