SEATTLE, June 25, 2019 /PRNewswire/ -- U.S. home values
dropped for the second month in a row, according to the May Zillow®
Real Estate Market Reporti.
The typical U.S. home is worth $226,800, down 0.1% from a month earlier. Home
values also fell in April, ending a streak of 85 consecutive months
of gains that added $78,500 in value
to the median home. This trend held in 32 of the 35 largest markets
in the U.S. – home values rose in St.
Louis and Phoenix, and
remained flat in Riverside.
Year-over-year appreciation, while still strong compared to
historic levels, has slowed in each of the past five months,
falling to 5.4% growth in May. A year ago, home values grew 7.5%
annually. Indianapolis and
Cincinnati are the only markets
that have accelerated from last May, while San Jose, Calif., remains the lone market to
have turned negative year-over-year, falling 5.7%.
"Stepping back to think about housing over the long haul, the
current slowdown in home value appreciation is expected and
comforting," said Zillow Director of Economic Research Skylar Olsen. "While the slowdown has been
arguably abrupt, the soft declines over the past two months should
not cause too much alarm. The aggressive pace of home values over
the past several years was known to be unsustainable. Buyers simply
couldn't afford it, so prices are correcting. The expectation here
is that we are steadily returning to normalcy—something U.S.
housing hasn't seen in two decades—and that will mean continued,
but ever more moderate, volatility. The significant drop in
mortgage rates, as well as renewed rent growth, may help return
U.S. housing values to positive appreciation earlier than
otherwise."
While home value growth has slowed, rent prices are
accelerating. The median monthly rent in the U.S. grew for the
seventh month in a row, rising 2.7% to $1,479. Rents are growing faster now than a year
ago in 28 of the top 35 markets, led by Las Vegas at 8.9%.
Inventory fell 0.5% year-over-year in the U.S., the third
straight month of declines after inventory rose in January and
February. The most significant drop was in Kansas City, which saw 27.8% fewer homes for
sale than this time last year. Inventory growth was largest in
Las Vegas and San Jose, both of which among the markets
where home value growth has slowed the most in the past year.
Mortgage rates listed on Zillow continued to fall in May. Rates
ended the month at 3.87%, down 14 basis points from May 1 and 88 basis points from a peak of 4.75% in
November 2018. 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 Index,
May 2019
|
ZHVI
Month-
over-
Month
Change
|
ZHVI Year-
over-Year
Change
|
Zillow Rent
Index, May
2019
|
ZRI
Year-
over-
Year
Change
|
Inventory
Year-over-
Year
Change
|
United
States
|
$226,800
|
-0.1%
|
5.4%
|
$1,479
|
2.7%
|
-0.5%
|
New York,
NY
|
$442,800
|
-0.2%
|
3.8%
|
$2,413
|
1.5%
|
5.1%
|
Los Angeles-Long
Beach-Anaheim, CA
|
$649,700
|
-0.2%
|
1.1%
|
$2,835
|
3.1%
|
16.2%
|
Chicago,
IL
|
$225,700
|
-0.3%
|
2.6%
|
$1,703
|
4.0%
|
5.8%
|
Dallas-Fort Worth,
TX
|
$242,600
|
-0.5%
|
6.3%
|
$1,651
|
3.5%
|
11.0%
|
Philadelphia,
PA
|
$232,400
|
-0.4%
|
2.4%
|
$1,611
|
2.7%
|
-10.9%
|
Houston,
TX
|
$205,200
|
-0.2%
|
3.7%
|
$1,586
|
2.3%
|
4.4%
|
Washington,
DC
|
$407,500
|
-0.2%
|
2.2%
|
$2,179
|
2.3%
|
-24.8%
|
Miami-Fort
Lauderdale, FL
|
$282,500
|
-0.5%
|
4.0%
|
$1,934
|
3.8%
|
5.3%
|
Atlanta,
GA
|
$219,200
|
-0.4%
|
8.3%
|
$1,462
|
5.0%
|
11.1%
|
Boston, MA
|
$464,200
|
-0.6%
|
3.2%
|
$2,415
|
2.4%
|
13.4%
|
San Francisco,
CA
|
$944,200
|
-0.4%
|
0.6%
|
$3,458
|
1.8%
|
21.4%
|
Detroit,
MI
|
$162,300
|
-0.2%
|
6.1%
|
$1,229
|
2.8%
|
14.7%
|
Riverside,
CA
|
$370,800
|
0.0%
|
4.4%
|
$2,004
|
5.8%
|
2.7%
|
Phoenix,
AZ
|
$266,900
|
0.0%
|
5.5%
|
$1,464
|
7.2%
|
0.9%
|
Seattle,
WA
|
$490,300
|
-0.5%
|
1.2%
|
$2,245
|
3.0%
|
23.9%
|
Minneapolis-St Paul,
MN
|
$271,200
|
-0.1%
|
4.8%
|
$1,706
|
4.3%
|
1.5%
|
San Diego,
CA
|
$591,000
|
0.0%
|
1.2%
|
$2,660
|
4.6%
|
11.5%
|
St. Louis,
MO
|
$166,900
|
0.1%
|
3.8%
|
$1,163
|
2.1%
|
-12.8%
|
Tampa, FL
|
$214,500
|
-0.3%
|
5.6%
|
$1,454
|
4.9%
|
7.2%
|
Baltimore,
MD
|
$267,500
|
-0.3%
|
1.4%
|
$1,751
|
0.7%
|
-12.2%
|
Denver, CO
|
$408,000
|
-0.3%
|
3.2%
|
$2,126
|
3.7%
|
25.0%
|
Pittsburgh,
PA
|
$142,800
|
-0.5%
|
2.0%
|
$1,105
|
2.4%
|
-13.2%
|
Portland,
OR
|
$396,800
|
-0.3%
|
2.5%
|
$1,883
|
2.6%
|
4.0%
|
Charlotte,
NC
|
$209,000
|
0.0%
|
8.1%
|
$1,352
|
4.6%
|
8.9%
|
Sacramento,
CA
|
$411,800
|
-0.1%
|
3.6%
|
$1,927
|
4.6%
|
-0.4%
|
San Antonio,
TX
|
$194,000
|
-0.1%
|
5.1%
|
$1,381
|
3.4%
|
17.5%
|
Orlando,
FL
|
$240,100
|
-0.2%
|
7.2%
|
$1,543
|
6.8%
|
6.5%
|
Cincinnati,
OH
|
$170,100
|
-0.4%
|
6.9%
|
$1,305
|
2.3%
|
-5.4%
|
Cleveland,
OH
|
$145,800
|
-0.5%
|
4.1%
|
$1,171
|
2.7%
|
-3.6%
|
Kansas City,
MO
|
$191,900
|
-0.4%
|
6.4%
|
$1,303
|
2.9%
|
-27.8%
|
Las Vegas,
NV
|
$279,300
|
-0.4%
|
7.5%
|
$1,418
|
8.9%
|
41.8%
|
Columbus,
OH
|
$192,300
|
-0.3%
|
6.8%
|
$1,374
|
3.1%
|
-3.1%
|
Indianapolis,
IN
|
$166,300
|
-0.3%
|
9.8%
|
$1,239
|
3.5%
|
N/A
|
San Jose,
CA
|
$1,176,200
|
-1.4%
|
-5.7%
|
$3,583
|
2.4%
|
40.6%
|
Austin, TX
|
$311,200
|
-0.1%
|
5.3%
|
$1,724
|
2.6%
|
-4.3%
|
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
great real estate professionals. In addition, Zillow operates an
industry-leading economics and analytics bureau led by Zillow
Group's Chief Economist Dr. Svenja
Gudell. Dr. Gudell and her team of economists, data
analysts, applied scientists and engineers 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/research/data.
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SOURCE Zillow