But the tide for buyers could be turning as
homes are taking longer to sell
- The typical U.S. home value breached $350,000 for the first time, eclipsing the
previous peak last July.
- The number of homes coming onto the market is closer to a
normal October than a typically faster-paced June.
- Homes took a day longer to sell than in May, a sign that
competition could be waning as home shopping season winds
down.
SEATTLE, July 12,
2023 /PRNewswire/ -- The typical home value eclipsed
$350,000 for the first time ever as
healthy demand from buyers continues to collide with reluctant
sellers, according to the latest Zillow® Market
Report.1
"Home buyers have persisted this spring despite daunting
affordability challenges and record-low inventory," said
Jeff Tucker, senior economist at
Zillow. "Demand typically begins to ease in the summer, and there
are signs that competition is waning, but large price declines are
unlikely until more homeowners list their homes for sale."
The typical U.S. home value climbed 1.4% from May to June,
continuing a four-month hot streak. The new peak of $350,213 is almost 1% higher than last June and
barely edges out the previous Zillow Home Value Index record set in
July 2022.
From hot spots to soft spots: Local home value
trends
Affordability remains the key to market strength, as
lower-priced metro areas posted the largest monthly gains;
Chicago, Buffalo, New
Orleans and Hartford all
notched 2.1% monthly growth, with Detroit close behind at 2%. Those markets all
have typical home values lower than the national average.
As in May, home values rose from the previous month in all 50 of
the largest metro areas. The slowest monthly growth was in
Austin (0.4%), followed by
Jacksonville, Memphis, San
Antonio and Birmingham,
which all saw 0.8% increases.
Drought of new listings intensifies
The flow of new
homes for sale ticked up 2.4% month over month, but the annual
deficit deepened, now standing at 28% fewer listings than a year
ago. June is usually one of the best months for fresh inventory,
but this year only 376,500 new listings arrived on the market.
That's closer to levels seen in the slower months of February and
October than to average new listings in June (505,100), according
to Zillow data reaching back to 2018.
A lack of new listings has dogged the housing market for nearly
a year, and higher mortgage rates remain the chief suspect. Rates
at 6.8% this week (the highest since November, up from 5.1% a year
ago and 3% two years ago) make it especially costly for homeowners
— most of whom have a mortgage well below today's rates — to borrow
for their next home purchase.
Another explanation could be that homeowners are holding out for
higher prices. Home values have steadily increased since January in
much of the country, but remain below peaks reached last summer in
many markets.
"It could be that some homeowners have been waiting until prices
set new highs in their market before opting to cash in their
chips," Tucker said.
The total pool of existing homes for sale is lower than any June
since at least 2018. It's down 10% from last year and a tremendous
45% below June 2019.
Drop-off in demand means less competition for
buyers
Potential buyers could see some slight relief on the
horizon, as a few metrics indicate demand and competition are
cooling. Sales measured by newly pending listings dipped almost 5%
from May to June, following seasonal trends seen in 2022 and before
the pandemic, when accepted offers crested in May.
Listings also lasted longer in June, 11 days before the typical
listing went pending, compared to 10 in May. But that's still a
much faster market than in 2019, when listings went pending in 21
days.
Rent growth is back to normal
Zillow's latest monthly
rent report shows rent growth is back to pre-pandemic norms for
this time of year, about 0.6% per month. San Diego overtook San Francisco as the third-most-expensive
place to rent.
Metropolitan
Area*
|
June Zillow
Home Value
Index (ZHVI)
(Raw)
|
ZHVI Change,
Month over Month
(MoM)
|
Monthly
Mortgage
Payment
(20% down)
|
Monthly
Mortgage
Payment
Change
Since 2019
|
New
Inventory
Change,
YoY
|
Total
Inventory
Change,
YoY
|
Listings'
typical days
on market
before pending
|
United
States
|
$350,213
|
1.4 %
|
$1,804
|
105.9 %
|
-28.1 %
|
-10.4 %
|
11
|
New York, NY
|
$617,792
|
1.7 %
|
$3,172
|
81.7 %
|
-36.7 %
|
-25.8 %
|
24
|
Los Angeles,
CA
|
$902,809
|
1.9 %
|
$4,619
|
90.6 %
|
-33.6 %
|
-25.9 %
|
13
|
Chicago, IL
|
$307,485
|
2.1 %
|
$1,581
|
81.9 %
|
-28.5 %
|
-24.8 %
|
7
|
Dallas, TX
|
$376,959
|
1.0 %
|
$1,945
|
100.5 %
|
-23.5 %
|
9.7 %
|
11
|
Houston, TX
|
$307,175
|
1.0 %
|
$1,585
|
95.7 %
|
-20.4 %
|
6.8 %
|
13
|
Washington,
DC
|
$545,767
|
1.1 %
|
$2,806
|
79.3 %
|
-35.2 %
|
-32.9 %
|
6
|
Philadelphia,
PA
|
$346,662
|
1.7 %
|
$1,783
|
97.9 %
|
-31.8 %
|
-23.3 %
|
8
|
Miami, FL
|
$463,616
|
1.7 %
|
$2,373
|
124.3 %
|
-30.6 %
|
7.9 %
|
21
|
Atlanta, GA
|
$375,553
|
1.2 %
|
$1,934
|
119.0 %
|
-32.4 %
|
-13.2 %
|
13
|
Boston, MA
|
$658,657
|
1.8 %
|
$3,387
|
84.4 %
|
-39.5 %
|
-36.8 %
|
7
|
Phoenix, AZ
|
$448,032
|
1.0 %
|
$2,307
|
112.2 %
|
-48.0 %
|
-24.2 %
|
22
|
San Francisco,
CA
|
$1,128,205
|
1.0 %
|
$5,805
|
74.8 %
|
-37.2 %
|
-31.7 %
|
13
|
Riverside,
CA
|
$555,973
|
1.1 %
|
$2,861
|
101.5 %
|
-38.1 %
|
-24.1 %
|
14
|
Detroit, MI
|
$247,141
|
2.0 %
|
$1,272
|
91.3 %
|
-28.9 %
|
-20.9 %
|
6
|
Seattle, WA
|
$710,133
|
1.5 %
|
$3,644
|
91.7 %
|
-40.9 %
|
-33.8 %
|
7
|
Minneapolis,
MN
|
$374,665
|
1.3 %
|
$1,937
|
79.2 %
|
-20.7 %
|
-17.1 %
|
13
|
San Diego,
CA
|
$888,246
|
1.7 %
|
$4,545
|
100.8 %
|
-35.5 %
|
-33.1 %
|
9
|
Tampa, FL
|
$377,038
|
1.2 %
|
$1,941
|
129.7 %
|
-28.3 %
|
0.3 %
|
11
|
Denver, CO
|
$587,415
|
0.9 %
|
$3,024
|
82.9 %
|
-23.1 %
|
-4.3 %
|
7
|
Baltimore,
MD
|
$374,407
|
1.3 %
|
$1,929
|
82.3 %
|
-27.4 %
|
-24.1 %
|
6
|
St. Louis,
MO
|
$245,165
|
1.8 %
|
$1,260
|
95.7 %
|
-24.0 %
|
-13.5 %
|
5
|
Orlando, FL
|
$389,423
|
0.9 %
|
$2,008
|
113.2 %
|
-30.8 %
|
-5.1 %
|
11
|
Charlotte,
NC
|
$372,192
|
1.7 %
|
$1,911
|
124.3 %
|
-34.8 %
|
-1.1 %
|
7
|
San Antonio,
TX
|
$295,228
|
0.8 %
|
$1,525
|
102.5 %
|
-23.5 %
|
22.6 %
|
19
|
Portland, OR
|
$550,249
|
1.0 %
|
$2,835
|
84.3 %
|
-29.8 %
|
-13.8 %
|
9
|
Sacramento,
CA
|
$567,406
|
1.4 %
|
$2,918
|
83.4 %
|
-30.8 %
|
-30.9 %
|
9
|
Pittsburgh,
PA
|
$207,088
|
1.9 %
|
$1,068
|
86.1 %
|
-24.9 %
|
-14.5 %
|
7
|
Cincinnati,
OH
|
$275,204
|
1.7 %
|
$1,414
|
104.0 %
|
-27.1 %
|
-22.3 %
|
4
|
Austin, TX
|
$486,097
|
0.4 %
|
$2,521
|
109.6 %
|
-32.9 %
|
8.5 %
|
33
|
Las Vegas,
NV
|
$403,837
|
1.1 %
|
$2,079
|
84.0 %
|
-49.9 %
|
-28.1 %
|
14
|
Kansas City,
MO
|
$296,126
|
1.5 %
|
$1,523
|
103.6 %
|
-23.4 %
|
-15.0 %
|
4
|
Columbus, OH
|
$306,164
|
1.7 %
|
$1,572
|
106.0 %
|
-23.7 %
|
-15.5 %
|
4
|
Indianapolis,
IN
|
$273,242
|
1.6 %
|
$1,407
|
116.1 %
|
-26.1 %
|
-11.7 %
|
6
|
Cleveland,
OH
|
$218,515
|
1.8 %
|
$1,127
|
95.3 %
|
-24.7 %
|
-15.5 %
|
5
|
San Jose, CA
|
$1,460,735
|
1.6 %
|
$7,460
|
79.8 %
|
-36.4 %
|
-39.8 %
|
9
|
Nashville,
TN
|
$439,109
|
1.4 %
|
$2,259
|
117.6 %
|
-30.0 %
|
2.2 %
|
11
|
Virginia Beach,
VA
|
$336,016
|
1.1 %
|
$1,731
|
90.2 %
|
-28.6 %
|
-24.5 %
|
17
|
Providence,
RI
|
$451,082
|
1.6 %
|
$2,324
|
98.6 %
|
-34.5 %
|
-32.9 %
|
8
|
Jacksonville,
FL
|
$354,880
|
0.8 %
|
$1,836
|
121.5 %
|
-28.1 %
|
10.5 %
|
29
|
Milwaukee,
WI
|
$329,908
|
1.8 %
|
$1,699
|
84.5 %
|
-24.6 %
|
-29.0 %
|
14
|
Oklahoma City,
OK
|
$229,137
|
1.0 %
|
$1,181
|
105.4 %
|
-25.4 %
|
4.9 %
|
8
|
Raleigh, NC
|
$435,580
|
1.2 %
|
$2,242
|
110.7 %
|
-34.0 %
|
-19.8 %
|
6
|
Memphis, TN
|
$235,913
|
0.8 %
|
$1,221
|
115.3 %
|
-23.4 %
|
4.0 %
|
20
|
Richmond, VA
|
$354,845
|
1.5 %
|
$1,823
|
103.7 %
|
-33.5 %
|
-27.5 %
|
5
|
Louisville,
KY
|
$252,307
|
1.1 %
|
$1,301
|
90.8 %
|
-24.7 %
|
-18.6 %
|
5
|
New Orleans,
LA
|
$246,896
|
2.1 %
|
$1,273
|
73.2 %
|
-22.7 %
|
41.9 %
|
32
|
Salt Lake City,
UT
|
$535,640
|
1.1 %
|
$2,760
|
107.2 %
|
-28.7 %
|
-10.1 %
|
10
|
Hartford, CT
|
$333,826
|
2.1 %
|
$1,717
|
87.9 %
|
-26.0 %
|
-26.4 %
|
5
|
Buffalo, NY
|
$252,260
|
2.1 %
|
$1,300
|
96.4 %
|
-25.6 %
|
-19.5 %
|
10
|
Birmingham,
AL
|
$251,109
|
0.8 %
|
$1,298
|
106.4 %
|
-23.7 %
|
-2.6 %
|
8
|
|
|
*
|
Table ordered by
market size
|
|
|
1
|
The Zillow Real Estate
Market Report is a monthly overview of the national and local real
estate markets. The reports are compiled by Zillow Research. For
more information, visit www.zillow.com/research.
|
About Zillow Group:
Zillow Group, Inc. (NASDAQ: Z and
ZG) is reimagining real estate to make home a reality for more and
more people. As the most visited real estate website in
the United States, Zillow and its
affiliates help people find and get the home they want by
connecting them with digital solutions, great partners, and easier
buying, selling, financing and renting experiences.
Zillow Group's affiliates, subsidiaries and brands include
Zillow®; Zillow Premier Agent®; Zillow Home Loans℠; Trulia®; Out
East®; StreetEasy®; HotPads®; and ShowingTime+℠, which
includes ShowingTime®, Bridge Interactive®, and dotloop®.
All marks herein are owned by MFTB Holdco, Inc., a Zillow
affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS
#10287 (www.nmlsconsumeraccess.org). © 2023 MFTB Holdco, Inc., a
Zillow affiliate.
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SOURCE Zillow