SEATTLE, Feb. 20, 2020 /PRNewswire/ -- Annual U.S.
home value growth slowed for the 21st consecutive month in January,
but you have to squint to spot the difference this time around.
When paired with inventory that is hovering near record lows, the
nearly two-year slowdown in the housing market may be coming to an
end right as home shopping season kicks off.
U.S. home values grew 3.8% year-over-year to $245,193, less than one-hundredth of a percentage
point slower than the previous month, according to the January
Zillow® Real Estate Market Report. Annual home value appreciation
has slowed in each month since April
2018, but this is the smallest drop from one month to the
next during that period.
And while the number of homes listed for sale increased from
record lows a month earlier, inventory is down 8% annually --
the biggest annual drop since March
2018. There were 1,500,262 homes on the market in January,
up 4,295 from the previous month but down 130,310
year-over-year.
This persistently low inventory is a key reason why home value
growth is expected to speed up once again. The economy has remained
strong, mortgage rates are low and buyers will be competing for a
limited number of homes this home shopping season.
"As the economic storm clouds on the horizon in early 2019
cleared up, we saw buyers return in droves, taking advantage of
ultra-low mortgage rates," said Zillow economist Jeff Tucker. "Our first look at 2020 data
suggests that we could see the most competitive home shopping
season in years, as buyers are already competing over
near-record-low numbers of homes for sale. That is likely to mean
more multiple-offer situations, and that buyers will have a harder
time finding the perfect fit for their families. The good news for
buyers is that low mortgage rates are helping to make home
ownership more affordable, and home builders are responding to the
hot housing market by starting construction on more homes than at
any time since 2007."
Home values are growing faster than they were a month ago in
about half of large markets (17 of the top 35). The hottest large
markets are Phoenix (up 6.7%),
Columbus (6.2%), Charlotte (5.4%) and Cincinnati (5%). Home values fell
year-over-year in San Jose for the
12th consecutive month. But its Bay
Area neighbor, San
Francisco, saw home values grow 1% year-over-year, breaking
a streak of declines that dated back to May 2019.
Inventory fell in all but three top-35 metros -- San Antonio (+7.7%), Detroit (+6.4%) and Chicago (+0.3%). Inventory was hit the hardest
in Seattle (-27.6%), Phoenix (-24.5%) and San Diego (-23.1%).
Rent growth remained stable. The typical rent is now
$1,602, up 2.3% year over year and
just $1 more than last month. Rents
are growing faster than a year ago in 28 of the 35 largest U.S.
metros, led by Phoenix (+7.9%
annually) -- also the fastest-growing for-sale market --
Pittsburgh (+7%), Cincinnati (+5.7%) and Las Vegas (+5.7%).
Mortgage rates listed by third-party lenders on Zillow rose to a
peak of 3.77% on January 31 after
starting the month at 3.70%. Rates reached their monthly low on
January 24 at 3.51%. Zillow's
real-time mortgage rates are based on thousands of custom mortgage
quotes submitted daily to anonymous borrowers on the Zillow
Mortgages site by third-party lenders and reflect recent changes in
the market.
Metropolitan
Area
|
Zillow Home
Value Index,
January 2020
|
ZHVI Year-
over-Year
Change
|
Zillow Rent
Index,
January 2020
|
ZRI Year-
over-Year
Change
|
Inventory
Year-over-Year
Change
|
United
States
|
$245,193
|
3.8%
|
$1,602
|
2.3%
|
-8.0%
|
New York,
NY
|
$481,486
|
0.8%
|
$2,297
|
1.7%
|
-3.6%
|
Los Angeles-Long
Beach-Anaheim,
CA
|
$674,786
|
2.3%
|
$2,625
|
1.8%
|
-18.5%
|
Chicago,
IL
|
$238,978
|
1.0%
|
$1,590
|
1.2%
|
0.3%
|
Dallas-Fort
Worth,
TX
|
$253,299
|
2.2%
|
$1,465
|
2.2%
|
-5.0%
|
Philadelphia,
PA
|
$248,836
|
3.1%
|
$1,518
|
3.2%
|
-13.3%
|
Houston,
TX
|
$217,159
|
2.4%
|
$1,402
|
0.9%
|
-4.6%
|
Washington,
DC
|
$434,156
|
3.1%
|
$1,979
|
2.3%
|
-11.0%
|
Miami-Fort
Lauderdale, FL
|
$299,657
|
1.8%
|
$1,853
|
0.8%
|
-7.9%
|
Atlanta,
GA
|
$239,115
|
4.8%
|
$1,482
|
4.7%
|
-0.5%
|
Boston, MA
|
$490,327
|
1.9%
|
$2,350
|
2.9%
|
-12.6%
|
San Francisco,
CA
|
$1,094,095
|
1.0%
|
$3,121
|
0.5%
|
-15.4%
|
Detroit,
MI
|
$179,078
|
3.6%
|
$1,208
|
1.6%
|
6.4%
|
Riverside,
CA
|
$382,754
|
3.1%
|
$1,942
|
3.2%
|
-16.2%
|
Phoenix,
AZ
|
$288,708
|
6.7%
|
$1,457
|
7.9%
|
-24.5%
|
Seattle,
WA
|
$531,353
|
3.1%
|
$2,026
|
2.4%
|
-27.6%
|
Minneapolis-St
Paul, MN
|
$292,183
|
3.9%
|
$1,531
|
3.4%
|
-3.3%
|
San Diego,
CA
|
$606,086
|
3.7%
|
$2,559
|
4.2%
|
-23.1%
|
St. Louis,
MO
|
$179,019
|
3.2%
|
$1,042
|
5.0%
|
-8.5%
|
Tampa, FL
|
$229,468
|
3.9%
|
$1,450
|
5.1%
|
-14.9%
|
Baltimore,
MD
|
$291,130
|
1.2%
|
$1,613
|
0.9%
|
-10.4%
|
Denver, CO
|
$437,537
|
2.3%
|
$1,800
|
2.8%
|
-13.9%
|
Pittsburgh,
PA
|
$157,983
|
4.5%
|
$1,175
|
7.0%
|
-11.1%
|
Portland,
OR
|
$418,051
|
1.9%
|
$1,689
|
2.7%
|
-16.2%
|
Charlotte,
NC
|
$237,051
|
5.4%
|
$1,362
|
5.3%
|
-9.7%
|
Sacramento,
CA
|
$427,699
|
4.0%
|
$1,827
|
4.5%
|
-18.9%
|
San Antonio,
TX
|
$203,705
|
4.0%
|
$1,229
|
1.3%
|
7.7%
|
Orlando,
FL
|
$256,306
|
3.7%
|
$1,456
|
4.4%
|
-11.8%
|
Cincinnati,
OH
|
$185,009
|
5.0%
|
$1,206
|
5.7%
|
-15.4%
|
Cleveland,
OH
|
$158,559
|
4.5%
|
$1,066
|
1.8%
|
-8.0%
|
Kansas City,
MO
|
$203,873
|
3.5%
|
$1,138
|
3.3%
|
-12.0%
|
Las Vegas,
NV
|
$290,420
|
1.2%
|
$1,357
|
5.7%
|
-11.7%
|
Columbus,
OH
|
$210,615
|
6.2%
|
$1,188
|
-0.2%
|
-7.0%
|
Indianapolis,
IN
|
$179,994
|
4.7%
|
$1,103
|
2.8%
|
N/A
|
San Jose,
CA
|
$1,194,002
|
-2.9%
|
$3,296
|
0.3%
|
-18.6%
|
Austin, TX
|
$337,558
|
4.0%
|
$1,632
|
4.8%
|
-14.1%
|
About Zillow
Zillow® is transforming how people buy,
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transactions for today's on-demand consumer. Zillow is the leading
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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
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people search, tour, apply and pay rent for leased
properties.
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SOURCE Zillow