SEATTLE, April 26, 2018 /PRNewswire/ -- There are almost 9
percent fewer homes on the market than a year ago, and the majority
of those are unaffordable for most first-time homebuyers. More than
half of all homes for sale across the U.S. are at the high end of
the market, according to the March Zillow® Real Estate Market
Reporti.
More millennials are aging into their prime home buying years
and looking to buy their first home, but there are very few homes
on the market that are affordable for them. Among all homes on the
market right now, just 22 percent are entry-level, among the least
expensive on the market.
This year's home-shopping season will be one of the most
competitive ever recorded. Inventory has been falling since the
beginning of 2015, and with so few homes for sale, many are going
for over asking price.
"This year's home-shopping season is shaping up to be even
crazier than last, and sadly, the group that will have the hardest
time is first-time and lower-income homebuyers," said Zillow Chief
Economist Svenja Gudell. "These
buyers will be competing for the few entry-level homes on the
market, which are also the ones appreciating the fastest because of
extremely high demand. One way to take the edge off would be an
increase in inventory, but that is easier said than done. There are
some signals a shift may be coming – construction activity is at
its highest point in a decade – but buyers shouldn't hold their
breath. Getting pre-approved for a mortgage and finding an agent
you trust can go a long way in helping buyers act quickly once the
right home does become available in this otherwise tight and
stressful housing landscape."
Inventory is down the most in San
Jose, Las Vegas and
Indianapolis. Home shoppers in
San Jose will have 26 percent
fewer homes to choose from than a year ago. In Las Vegas, inventory is down 23.5 percent, and
among the homes on the market, almost 70 percent are high-end
homes, among the most expensive on the market.
While inventory remains low, home value appreciation is soaring.
The median home value in the U.S. rose 8 percent since last March
to $213,146. Home values in
San Jose, Las Vegas and Seattle are rising the fastest. The median
home value in San Jose rose 25
percent over the past year to $1,252,424. In Las
Vegas, home values rose 17 percent year-over-year, and 15
percent in Seattle.
Median rent across the nation rose 2.7 percent over the past
year to a median payment of $1,447
per month. Sacramento, Calif.,
Riverside, Calif., and
Seattle reported the greatest
year-over-year rent appreciation among the 35 largest U.S. metros.
In Sacramento, median rent rose
7.7 percent to $1,852. Median rent in
Riverside and Seattle rose 7 percent and 4.7 percent,
respectively.
March ended with mortgage rates on Zillowii at 4.19
percent, the lowest rate of the monthiii. March mortgage
rates peaked toward the end of the month at 4.30 percent, after
starting the month at 4.20 percent. 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.
Region
Name
|
Zillow Home
Value Indexiv (ZHVI)
|
ZHVI
Year-
Over-
Year
Change
|
Zillow Rent
Indexv (ZRI)
|
ZRI Year-
Over-
Year
Change
|
Year-
Over-Year
Inventory
Change
|
Share of
Homes
for Sale
that are
High-End
|
Share of
Homes for
Sale that
are Entry-
Level
|
United
States
|
$
213,146
|
8.0%
|
$
1,447
|
2.7%
|
-8.6%
|
51.4%
|
21.9%
|
New York,
NY
|
$
431,570
|
10.0%
|
$
2,400
|
0.6%
|
-8.4%
|
41.4%
|
30.0%
|
Los Angeles-Long
Beach-Anaheim, CA
|
$
645,199
|
8.5%
|
$
2,753
|
4.0%
|
-7.9%
|
48.4%
|
24.2%
|
Chicago,
IL
|
$
218,255
|
5.9%
|
$
1,654
|
2.1%
|
-7.7%
|
55.3%
|
19.2%
|
Dallas-Fort Worth,
TX
|
$
227,395
|
12.3%
|
$
1,606
|
2.4%
|
20.7%
|
61.8%
|
9.8%
|
Philadelphia,
PA
|
$
228,189
|
8.4%
|
$
1,581
|
1.0%
|
-8.2%
|
38.3%
|
32.6%
|
Houston,
TX
|
$
196,155
|
5.4%
|
$
1,558
|
1.0%
|
-4.1%
|
n/a
|
n/a
|
Washington,
DC
|
$
401,178
|
5.2%
|
$
2,148
|
1.6%
|
27.3%
|
38.8%
|
26.4%
|
Miami-Fort
Lauderdale, FL
|
$
269,514
|
8.5%
|
$
1,865
|
1.1%
|
-3.2%
|
52.7%
|
21.0%
|
Atlanta,
GA
|
$
197,954
|
9.0%
|
$
1,397
|
4.5%
|
-14.3%
|
59.7%
|
13.0%
|
Boston, MA
|
$
450,235
|
6.8%
|
$
2,379
|
1.3%
|
-10.3%
|
46.1%
|
23.6%
|
San Francisco,
CA
|
$
938,186
|
10.3%
|
$
3,420
|
2.1%
|
-9.9%
|
37.0%
|
33.1%
|
Detroit,
MI
|
$
147,957
|
7.0%
|
$
1,208
|
3.2%
|
-11.6%
|
49.8%
|
28.6%
|
Riverside,
CA
|
$
357,145
|
9.9%
|
$
1,885
|
7.1%
|
-6.7%
|
44.0%
|
28.8%
|
Phoenix,
AZ
|
$
252,799
|
8.7%
|
$
1,364
|
4.1%
|
-13.9%
|
50.4%
|
17.0%
|
Seattle,
WA
|
$
492,227
|
14.8%
|
$
2,208
|
4.7%
|
-16.1%
|
41.2%
|
24.3%
|
Minneapolis-St Paul,
MN
|
$
259,088
|
8.2%
|
$
1,643
|
4.6%
|
-6.8%
|
57.2%
|
17.7%
|
San Diego,
CA
|
$
585,310
|
8.8%
|
$
2,550
|
3.9%
|
-5.2%
|
48.9%
|
26.2%
|
St. Louis,
MO
|
$
159,556
|
5.5%
|
$
1,150
|
1.1%
|
-6.0%
|
45.2%
|
27.0%
|
Tampa, FL
|
$
200,951
|
11.9%
|
$
1,377
|
2.1%
|
-5.3%
|
48.7%
|
20.5%
|
Baltimore,
MD
|
$
264,434
|
5.7%
|
$
1,745
|
1.7%
|
8.2%
|
40.3%
|
27.8%
|
Denver, CO
|
$
396,782
|
8.2%
|
$
2,054
|
2.9%
|
-15.5%
|
56.8%
|
15.9%
|
Pittsburgh,
PA
|
$
137,900
|
7.4%
|
$
1,075
|
0.9%
|
-14.4%
|
45.0%
|
30.4%
|
Portland,
OR
|
$
389,082
|
6.4%
|
$
1,860
|
2.8%
|
8.2%
|
52.1%
|
18.9%
|
Charlotte,
NC
|
$
194,418
|
12.0%
|
$
1,299
|
3.8%
|
0.7%
|
66.5%
|
12.3%
|
Sacramento,
CA
|
$
401,875
|
9.1%
|
$
1,852
|
7.7%
|
-9.2%
|
47.6%
|
22.6%
|
San Antonio,
TX
|
$
183,602
|
6.8%
|
$
1,345
|
1.5%
|
6.1%
|
n/a
|
n/a
|
Orlando,
FL
|
$
224,189
|
11.2%
|
$
1,442
|
3.2%
|
-10.5%
|
58.3%
|
13.9%
|
Cincinnati,
OH
|
$
156,379
|
5.5%
|
$
1,282
|
2.1%
|
-11.9%
|
52.4%
|
26.0%
|
Cleveland,
OH
|
$
139,126
|
7.4%
|
$
1,149
|
0.5%
|
-11.6%
|
42.3%
|
28.2%
|
Kansas City,
MO
|
$
177,325
|
8.5%
|
$
1,282
|
2.2%
|
6.9%
|
n/a
|
n/a
|
Las Vegas,
NV
|
$
260,161
|
16.9%
|
$
1,302
|
4.4%
|
-23.5%
|
68.6%
|
31.4%
|
Columbus,
OH
|
$
178,933
|
9.1%
|
$
1,324
|
2.1%
|
-21.6%
|
56.0%
|
22.3%
|
Indianapolis,
IN
|
$
150,111
|
7.8%
|
$
1,207
|
1.7%
|
-22.1%
|
n/a
|
n/a
|
San Jose,
CA
|
$
1,252,424
|
25.0%
|
$
3,523
|
2.1%
|
-26.4%
|
30.7%
|
39.4%
|
Austin, TX
|
$
291,598
|
5.2%
|
$
1,686
|
-0.3%
|
-0.2%
|
n/a
|
n/a
|
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 for a 30-year fixed mortgage.
iii This rate was also hit on March 28th and 30th.
iv 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.
v 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