SEATTLE, June 22, 2017 /PRNewswire/ -- The number of
for-sale homes hitting the market is dropping at its fastest pace
in almost four years, according to the May Zillow® Real Estate
Market Reportsi. The typical
home stayed on the market for just 77 days, the fewest days on
Zillowii ever
reported.
Across the country, home shoppers will have 9 percent fewer
homes to choose from than a year ago, which is the greatest drop in
inventory since August 2013 when
inventory was down more than 10 percent.
Columbus, Ohio, San Jose, Calif. and Minneapolis reported the greatest annual
declines in the number of homes for sale, with about 30 percent
fewer homes for sale in each market. In San Diego, there are 26 percent fewer homes on
the market than a year ago, and 22 percent fewer in Seattle. Both San
Diego and Seattle have high
buyer demand and home value growth of over 6 percent.
When the housing market crashed, many Americans went from owning
single-family homes to renting them -- between 2005 and 2016, the
number of owner-occupied single-family homes fell by 680,000, while
the number of renter-occupied single-family homes increased by 6.2
millioniii.
This increase in the number of single-family home rentals is one
of the reasons why inventory remains low. The amount of new
construction coming available hasn't been enough to offset the
subtraction of more single-family homes being converted to rentals.
Rental homes are put for sale less frequently, which creates more
options for renters, but fewer for buyers.
"Inventory has been falling for years with supply no longer
meeting demand, and there are multiple reasons for the worsening
situation," said Zillow Chief Economist Dr. Svenja Gudell. "On the demand side, simple
demographic change is contributing to incredibly high demand as
millennials reach their prime home-buying years and begin to enter
the market in droves. This is coupled with relatively low levels of
new home construction on the supply side insufficient to keep pace
with demand, and what is built is largely priced beyond the reach
of many of the first-time and entry-level home buyers in the
market. Thousands of single-family homes that were once bought and
sold every few years prior to the recession have now been converted
into rental properties by investors, trading hands much less
frequently and further contributing to inventory shortages. And
finally, in some still hard-hit markets, negative equity is likely
keeping many homeowners of lower-end homes from listing their home
for sale because they can't afford to profitably do so. There is no
silver bullet that will clear the market of all of these issues,
and buyers frustrated by the status quo will likely have to remain
patient and be ready to pounce once that perfect home does become
available."
The median home value across the country is $199,200, up 7.4 percent since this time last
year. Seattle, Dallas and Tampa,
Fla. reported the highest year-over-year home value
appreciation among the 35 largest U.S. metros. In Seattle, home values rose almost 13 percent to
a median value of $440,100.
Home values in Dallas and Tampa are up about 11 percent since this time
last year.
Median rent across the nation rose 0.7 percent since last May,
to a median payment of $1,416 per
month. Seattle, Sacramento, Calif. and Los Angeles reported the greatest
year-over-year rent appreciation among the 35 largest U.S. metros.
Rents in Seattle are up almost 6
percent to a Zillow Rent Indexiv
(ZRI) of $2,127. Median rent in
Sacramento is up 4.5 percent,
while Los Angeles median rent are
up 4 percent.
Mortgage ratesv on
Zillow ended the month of May at 3.73 percent, the lowest level of
the month. Mortgage rates hit a high of 3.90 percent less than two
weeks into Mayvi. 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
Indexvii
(ZHVI)
|
Year-
over-Year
ZHVI
Change
|
Zillow Rent
Index (ZRI)
|
Year-
over-Year
ZRI
Change
|
Year-over-
Year
Inventory
Change
|
% Change in
Single-Family
Home Rentals
Since 2000
|
United States
|
$
199,200
|
7.4%
|
$
1,416
|
0.7%
|
-9.4%
|
46.6%
|
New York, NY
|
$
419,000
|
8.7%
|
$
2,374
|
-1.9%
|
-16.6%
|
0.4%
|
Los Angeles-Long
Beach-Anaheim,
CA
|
$
606,500
|
5.8%
|
$
2,667
|
4.1%
|
-12.4%
|
19.5%
|
Chicago, IL
|
$
210,200
|
6.3%
|
$
1,631
|
-1.0%
|
-11.4%
|
83.6%
|
Dallas-Fort Worth,
TX
|
$
209,200
|
11.2%
|
$
1,580
|
2.9%
|
8.3%
|
66.1%
|
Philadelphia, PA
|
$
218,300
|
5.0%
|
$
1,563
|
-0.9%
|
-14.5%
|
39.5%
|
Houston, TX
|
$
175,800
|
2.7%
|
$
1,541
|
-2.7%
|
9.1%
|
59.1%
|
Washington, DC
|
$
383,200
|
3.4%
|
$
2,120
|
-0.1%
|
-18.7%
|
38.1%
|
Miami-Fort
Lauderdale, FL
|
$
251,700
|
8.2%
|
$
1,848
|
-1.8%
|
1.3%
|
76.8%
|
Atlanta, GA
|
$
178,700
|
7.8%
|
$
1,343
|
2.8%
|
-8.1%
|
159.1%
|
Boston, MA
|
$
425,500
|
7.6%
|
$
2,361
|
3.2%
|
-21.2%
|
27.3%
|
San Francisco, CA
|
$
851,900
|
5.3%
|
$
3,362
|
-0.4%
|
-20.1%
|
32.5%
|
Detroit, MI
|
$
140,900
|
10.5%
|
$
1,165
|
-1.4%
|
-18.7%
|
49.0%
|
Riverside, CA
|
$
326,800
|
6.6%
|
$
1,780
|
3.0%
|
-17.8%
|
84.5%
|
Phoenix, AZ
|
$
235,100
|
6.4%
|
$
1,315
|
1.9%
|
-7.8%
|
186.5%
|
Seattle, WA
|
$
440,100
|
12.7%
|
$
2,127
|
5.7%
|
-22.2%
|
45.0%
|
Minneapolis-St
Paul, MN
|
$
247,100
|
8.9%
|
$
1,584
|
3.1%
|
-28.7%
|
178.0%
|
San Diego, CA
|
$
543,400
|
6.5%
|
$
2,467
|
2.6%
|
-25.5%
|
43.3%
|
St. Louis, MO
|
$
148,700
|
4.5%
|
$
1,141
|
0.0%
|
-14.2%
|
66.9%
|
Tampa, FL
|
$
184,900
|
10.5%
|
$
1,353
|
2.1%
|
-17.6%
|
109.5%
|
Baltimore, MD
|
$
260,400
|
3.6%
|
$
1,721
|
-0.7%
|
-19.0%
|
16.3%
|
Denver, CO
|
$
368,200
|
9.2%
|
$
2,001
|
0.1%
|
2.5%
|
77.0%
|
Pittsburgh, PA
|
$
136,900
|
5.0%
|
$
1,067
|
-5.2%
|
-9.3%
|
26.7%
|
Portland, OR
|
$
363,800
|
6.7%
|
$
1,816
|
3.5%
|
2.8%
|
43.8%
|
Charlotte, NC
|
$
173,200
|
7.8%
|
$
1,257
|
1.0%
|
-17.4%
|
101.1%
|
Sacramento, CA
|
$
366,500
|
8.6%
|
$
1,735
|
4.5%
|
-14.1%
|
49.6%
|
San Antonio, TX
|
$
160,400
|
5.7%
|
$
1,329
|
1.0%
|
-0.9%
|
38.8%
|
Orlando, FL
|
$
205,700
|
9.8%
|
$
1,402
|
2.7%
|
-14.3%
|
100.8%
|
Cincinnati, OH
|
$
151,600
|
6.3%
|
$
1,254
|
1.0%
|
-20.2%
|
68.3%
|
Cleveland, OH
|
$
134,000
|
5.2%
|
$
1,150
|
0.7%
|
4.0%
|
52.8%
|
Kansas City, MO
|
$
158,200
|
6.6%
|
$
1,263
|
1.7%
|
8.2%
|
81.2%
|
Las Vegas, NV
|
$
222,900
|
10.2%
|
$
1,248
|
0.8%
|
19.2%
|
259.0%
|
Columbus, OH
|
$
161,900
|
4.6%
|
$
1,300
|
0.9%
|
-30.1%
|
76.3%
|
Indianapolis, IN
|
$
137,700
|
5.1%
|
$
1,188
|
-0.3%
|
-22.1%
|
70.0%
|
San Jose, CA
|
$
1,007,400
|
4.9%
|
$
3,465
|
-1.2%
|
-29.2%
|
24.9%
|
Austin, TX
|
$
271,000
|
7.5%
|
$
1,693
|
-1.1%
|
23.9%
|
65.5%
|
About 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 (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 Days on Zillow
is the median days on market of homes sold within a given month,
including foreclosure re-sales. The latest data is for one month
prior to the current ZHVI. The most current month for ZHVI data is
May, so the most current month for Days on Zillow is April.
iii According to
Zillow Research here.
iv 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.
v
Rates for a 30-year fixed mortgage.
vi Month high
occurred on May
11th.
vii 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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/number-of-homes-for-sale-drop-at-fastest-pace-in-four-years-300478058.html
SOURCE Zillow