SEATTLE, Jan. 21, 2020 /PRNewswire/ -- The number of
for-sale homes in the U.S. is at its lowest point in at least seven
years, and the shortage appears poised to get worse before it gets
better. Inventory fell 7.5% annually to its lowest level in Zillow
data that dates back to 2013, according to the December Zillow®
Real Estate Market Reporti.
At the end of 2018, signs of hope emerged that inventory had hit
bottom and was starting to dig itself out of a hole. With the
benefit of hindsight, it's clear that the inventory gains in late
2018 were a false dawn due largely to a temporary stock market dip
and spike in mortgage rates, not the start of a sustained trend.
Now, with mortgage rates lowered again and consumer confidence
holding steady, demand shows no signs of abating and eager buyers
are snatching up the few homes that are made available.
Inventory is down year-over-year in 31 of the 35 largest U.S.
housing markets, with San Antonio
(up 8.1%), Detroit (up 7.6%),
Atlanta (up 1.8%) and Chicago (up 0.6%) the only exceptions.
Seattle (down 28.5%), San Diego (down 23%) and Sacramento (down 21.7%) saw inventory shrink
the most in 2019.
As inventory continues to fall, the slowdown in home value
growth may be coming to an end as high demand is putting price
pressure on the relatively small number of homes that are on the
market. The rate of annual home value growth slowed once again from
November, marking 20 consecutive months in which growth has slowed.
But the gap between November and December is the smallest one-month
drop since the slowdown began.
U.S. home values grew 3.7% in 2019 to $244,054, down from 3.8% year-over-year growth
last month. Home values grew the most in Phoenix (up 6.5%), Columbus (up 5.9%) and
Charlotte (up 5.9%) in 2019. Home values fell in just two markets
-- San Jose (down 6.4%) and
San Francisco (down 1%).
"The end of 2019 looks a whole lot different than we might have
expected at the beginning of the year," said Skylar Olsen, director of economic research at
Zillow. "A year ago, a combination of a government shutdown, stock
market slump and mortgage rate spike caused a long-anticipated
inventory rise. That supposed boom turned out to be a short-lived
mirage as buyers came back into the market and more than erased the
inventory gains. As a natural reaction, the recent slowdown in home
values looks like it's set to reverse back to accelerating growth
right as we head into home shopping season with demand outpacing
supply."
The typical U.S. rent is $1,600,
up 2.6% in 2019 but flat from November. Phoenix (up 8.1%) and Charlotte (up 5.3%) --
also two of the top markets for home value growth -- led the way in
2019, while Columbus -- the second-hottest for-sale market -- was
the only large market in which rents fell last year, dropping
2.5%.
Mortgage rates listed on Zillow fell to 3.66% in December after
starting the month at 3.72%. Rates reached their monthly low on
December 16 at 3.6%, then peaked at
3.75% on December 25. 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 recent changes in the market.
Metropolitan
Area
|
Zillow Home
Value Index,
December 2019
|
ZHVI Year-
over-Year
Change
|
Zillow Rent
Index,
December
2019
|
ZRI Year-
over-Year
Change
|
Inventory
Year-over-
Year Change
|
United
States
|
$244,054
|
3.7%
|
$1,600
|
2.6%
|
-7.5%
|
New York,
NY
|
$478,643
|
0.7%
|
$2,300
|
2.7%
|
-3.5%
|
Los Angeles-Long
Beach-Anaheim, CA
|
$669,028
|
1.6%
|
$2,640
|
2.3%
|
-16.5%
|
Chicago,
IL
|
$238,050
|
1.0%
|
$1,600
|
0.6%
|
0.6%
|
Dallas-Fort Worth,
TX
|
$251,455
|
2.6%
|
$1,470
|
2.1%
|
-2.6%
|
Philadelphia,
PA
|
$248,010
|
3.2%
|
$1,510
|
2.0%
|
-13.5%
|
Houston,
TX
|
$216,743
|
3.0%
|
$1,410
|
0.7%
|
-3.8%
|
Washington,
DC
|
$432,977
|
3.3%
|
$1,980
|
2.1%
|
-15.0%
|
Miami-Fort
Lauderdale, FL
|
$299,347
|
2.0%
|
$1,880
|
1.1%
|
-6.1%
|
Atlanta,
GA
|
$237,298
|
4.8%
|
$1,480
|
3.5%
|
1.8%
|
Boston, MA
|
$486,247
|
1.7%
|
$2,330
|
1.7%
|
-11.5%
|
San Francisco,
CA
|
$1,082,771
|
-1.0%
|
$3,130
|
0.6%
|
-12.9%
|
Detroit,
MI
|
$177,774
|
3.6%
|
$1,210
|
0.8%
|
7.6%
|
Riverside,
CA
|
$381,279
|
3.4%
|
$1,920
|
2.7%
|
-15.5%
|
Phoenix,
AZ
|
$286,199
|
6.5%
|
$1,470
|
8.1%
|
-21.0%
|
Seattle,
WA
|
$521,330
|
1.9%
|
$2,030
|
2.5%
|
-28.5%
|
Minneapolis-St Paul,
MN
|
$289,487
|
4.1%
|
$1,520
|
2.0%
|
-3.4%
|
San Diego,
CA
|
$602,153
|
2.2%
|
$2,540
|
3.7%
|
-23.0%
|
St. Louis,
MO
|
$177,525
|
3.4%
|
$1,040
|
5.1%
|
-11.0%
|
Tampa, FL
|
$228,181
|
4.0%
|
$1,430
|
3.6%
|
-12.8%
|
Baltimore,
MD
|
$289,277
|
1.0%
|
$1,610
|
0.6%
|
-11.2%
|
Denver, CO
|
$433,130
|
1.8%
|
$1,800
|
2.9%
|
-10.9%
|
Pittsburgh,
PA
|
$158,126
|
4.7%
|
$1,150
|
4.5%
|
-12.6%
|
Portland,
OR
|
$414,260
|
1.9%
|
$1,690
|
3.0%
|
-15.7%
|
Charlotte,
NC
|
$235,221
|
5.9%
|
$1,380
|
5.3%
|
-9.8%
|
Sacramento,
CA
|
$423,874
|
3.6%
|
$1,820
|
3.4%
|
-21.7%
|
San Antonio,
TX
|
$203,024
|
4.2%
|
$1,230
|
0.8%
|
8.1%
|
Orlando,
FL
|
$251,329
|
3.7%
|
$1,450
|
2.8%
|
-10.6%
|
Cincinnati,
OH
|
$183,646
|
5.2%
|
$1,190
|
3.5%
|
-16.8%
|
Cleveland,
OH
|
$157,312
|
4.3%
|
$1,080
|
1.9%
|
-5.8%
|
Kansas City,
MO
|
$202,181
|
3.7%
|
$1,140
|
2.7%
|
-11.2%
|
Las Vegas,
NV
|
$289,209
|
1.2%
|
$1,360
|
4.6%
|
-4.5%
|
Columbus,
OH
|
$208,938
|
5.9%
|
$1,180
|
-2.5%
|
-8.4%
|
Indianapolis,
IN
|
$179,116
|
5.2%
|
$1,110
|
2.8%
|
N/A
|
San Jose,
CA
|
$1,168,671
|
-6.4%
|
$3,310
|
0.6%
|
-16.6%
|
Austin, TX
|
$333,381
|
3.7%
|
$1,630
|
4.5%
|
-15.6%
|
About Zillow
Zillow® is transforming how people buy, sell, rent and finance
homes by creating seamless real estate transactions for today's
on-demand consumer. Zillow is the leading real estate and rental
marketplace and a trusted source for data, inspiration and
knowledge among both consumers and real estate
professionals.
Zillow's proprietary data, technology and industry partnerships
put Zillow at nearly every major point of the home shopping
experience, helping consumers search for and get into their new
home faster. Zillow now offers a fully integrated home shopping
experience that includes access to for sale and rental listings,
Zillow Offers®, which provides a new, hassle-free way to buy and
sell eligible homes directly through Zillow; and Zillow Home Loans,
Zillow's affiliated lender that provides an easy way to receive
mortgage pre-approvals and financing. Zillow Premier Agent
instantly connects buyers and sellers with its network of real
estate professionals to help guide them through the home shopping
process. For renters, Zillow's innovations are streamlining the way
people search, tour, apply and pay rent for leased
properties.
In addition to Zillow.com, Zillow operates the most popular
suite of mobile real estate apps, with more than two dozen apps
across all major platforms. Launched in 2006, Zillow is owned and
operated by Zillow Group, Inc. (NASDAQ:Z and ZG) and headquartered
in Seattle.
Zillow and Zillow Offers are registered trademarks 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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