SEATTLE, Aug. 23, 2018 /PRNewswire/ -- Home-value
growth is slowing in almost two-thirds of the nation's largest
housing markets, according to the July Zillow® Real Estate Market
Reporti. Seattle,
Tampa, Sacramento, Calif., and Portland reported the greatest slowdown in
home value appreciation over the past year.
Seattle, which led the nation
in home-value growth a year agoii, is now the
12th fastest-appreciating housing market and reported
the greatest slowdown over the past year. At this time last year,
home values in Seattle were
appreciating at more than 14 percent annually, but have now slowed
to a 9 percent appreciation rate.
Home values across the U.S. rose 8 percent in the past year, 0.7
percentage points faster than the year before. While national home
value growth hasn't slowed yet, Zillow forecasts the annual
appreciation rate to drop to 6.8 percent over the next 12 months.
The median home value in the U.S. is $218,000, the highest value ever reported.
While home-value growth is slowing in the majority of the
largest markets, the current annual appreciation rate is still
higher than historical normsiii in all but four of the
markets analyzed. In Tampa, where
home-value growth has slowed significantly over the past year, home
values rose over 10.5 percent in the past year, while the historic
average rate of appreciation is just over 5 percent. The historic
average annual rate of appreciation in the U.S. is 3.7 percent.
"The nation's pricier markets are starting to feel an
affordability squeeze as buyers begin to balk at the sustained,
rapid rise in prices that have followed the strong job growth and
high housing demand of the past half-decade," said Zillow senior
economist Aaron Terrazas. "But
despite the slowdown, home values are still growing faster than
their historic pace in almost all large markets, and it's far too
soon to call it a buyer's market. And in many of the nation's more
affordable areas, aside from the pricey and exclusive San Francisco Bay Area, home value growth has
perked up as buyers continue to seek good value for their money.
But it's clear that the winds that have boosted sellers over the
past few years are ever-so-slightly starting to shift."
The rental market is also showing signs of a slowdown. Median
rent across the U.S. rose 0.5 percent over the past year to
$1,440, down from 1.6 percent growth
a year ago. Among the 35 largest housing markets, 21 reported
slower rent appreciation in July compared to a year ago, with
Seattle, Portland and Kansas
City leading the slowdown.
Rental prices rose the most over the past year in Riverside, Calif., Sacramento and Las
Vegas. Median rent in Riverside rose 4.6 percent since last July to
$1,898. Median rent in Sacramento and Las
Vegas rose 4.4 percent and 3.2 percent, respectively.
The number of homes for sale has been declining annually across
the country for 42 straight months, although the pace of the
decline is slowing. Home shoppers will have about 4 percent fewer
homes on the market to choose from than a year ago – the smallest
annual decline in 17 months. Columbus,
Ohio, Atlanta and
Pittsburgh reported the greatest
drop in inventory over the past year. In Columbus and Atlanta, home shoppers will have about 14
percent fewer homes to choose from than a year ago, and about 13
percent fewer to choose from in Pittsburgh.
July ended with mortgage rates on Zillowiv at 4.40
percent, after starting the month at 4.35 percent. July mortgage
rates peaked on the second to last day of the month at 4.42
percent, and hit a month low in the middle of the monthv
when rates were at 4.30 percent. 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
|
Current YoY Home
Value Growth
|
July 2017 YoY Home
Value Growth
|
Average Rate of
Home Value Growth
|
Zillow Home Value
Index (ZHVI)
|
Zillow Rent Index
(ZRI)
|
Current YoY ZRI
Change
|
July 2017 YoY ZRI
Change
|
YoY Inventory
Change
|
United
States
|
8.0%
|
7.3%
|
3.7%
|
$
218,000
|
$
1,440
|
0.5%
|
1.6%
|
-3.9%
|
New York,
NY
|
5.9%
|
6.8%
|
4.8%
|
$
429,700
|
$
2,372
|
-0.4%
|
-1.0%
|
2.7%
|
Los Angeles-Long
Beach-Anaheim, CA
|
6.2%
|
7.3%
|
6.9%
|
$
643,300
|
$
2,752
|
2.0%
|
4.3%
|
13.2%
|
Chicago,
IL
|
5.2%
|
5.8%
|
2.4%
|
$
219,800
|
$
1,636
|
-0.8%
|
0.2%
|
1.4%
|
Dallas-Fort Worth,
TX
|
11.6%
|
11.9%
|
3.1%
|
$
231,100
|
$
1,595
|
0.1%
|
3.0%
|
31.2%
|
Philadelphia,
PA
|
5.5%
|
5.9%
|
3.6%
|
$
228,400
|
$
1,566
|
-0.7%
|
-0.4%
|
-9.3%
|
Houston,
TX
|
6.0%
|
4.9%
|
3.0%
|
$
199,300
|
$
1,548
|
0.5%
|
-2.7%
|
-6.5%
|
Washington,
DC
|
3.4%
|
3.4%
|
4.8%
|
$
397,500
|
$
2,132
|
-0.1%
|
0.4%
|
1.3%
|
Miami-Fort
Lauderdale, FL
|
8.4%
|
10.3%
|
5.9%
|
$
275,700
|
$
1,857
|
0.4%
|
-1.8%
|
2.9%
|
Atlanta,
GA
|
12.2%
|
8.1%
|
3.2%
|
$
206,300
|
$
1,394
|
2.7%
|
3.4%
|
-14.2%
|
Boston, MA
|
6.9%
|
8.2%
|
5.3%
|
$
456,400
|
$
2,365
|
-0.4%
|
2.4%
|
7.6%
|
San Francisco,
CA
|
10.4%
|
6.9%
|
7.2%
|
$
954,100
|
$
3,399
|
0.4%
|
-0.6%
|
11.7%
|
Detroit,
MI
|
9.9%
|
10.0%
|
2.6%
|
$
156,100
|
$
1,194
|
2.3%
|
-1.0%
|
1.5%
|
Riverside,
CA
|
7.0%
|
8.0%
|
6.2%
|
$
358,600
|
$
1,898
|
4.6%
|
4.3%
|
15.4%
|
Phoenix,
AZ
|
7.7%
|
7.3%
|
4.8%
|
$
256,000
|
$
1,362
|
1.7%
|
2.6%
|
-8.6%
|
Seattle,
WA
|
9.1%
|
14.2%
|
5.6%
|
$
487,600
|
$
2,173
|
0.3%
|
5.3%
|
13.2%
|
Minneapolis-St Paul,
MN
|
6.9%
|
7.7%
|
4.3%
|
$
261,300
|
$
1,638
|
1.8%
|
3.9%
|
-1.4%
|
San Diego,
CA
|
6.0%
|
8.3%
|
6.6%
|
$
584,100
|
$
2,540
|
1.0%
|
3.5%
|
36.3%
|
St. Louis,
MO
|
5.4%
|
5.3%
|
3.0%
|
$
161,800
|
$
1,139
|
-0.4%
|
0.4%
|
-5.4%
|
Tampa, FL
|
10.6%
|
14.2%
|
5.3%
|
$
205,900
|
$
1,390
|
2.3%
|
1.8%
|
0.2%
|
Baltimore,
MD
|
4.9%
|
3.3%
|
4.0%
|
$
264,700
|
$
1,740
|
0.2%
|
-0.1%
|
-0.4%
|
Denver, CO
|
7.1%
|
8.7%
|
5.2%
|
$
397,800
|
$
2,054
|
1.3%
|
0.6%
|
-8.3%
|
Pittsburgh,
PA
|
7.8%
|
4.4%
|
4.0%
|
$
141,600
|
$
1,083
|
-0.4%
|
-2.3%
|
-13.1%
|
Portland,
OR
|
5.7%
|
9.0%
|
2.9%
|
$
391,800
|
$
1,834
|
-0.7%
|
3.8%
|
16.7%
|
Charlotte,
NC
|
10.7%
|
8.9%
|
3.1%
|
$
196,800
|
$
1,293
|
1.3%
|
2.7%
|
6.8%
|
Sacramento,
CA
|
5.7%
|
9.1%
|
5.7%
|
$
400,800
|
$
1,842
|
4.4%
|
4.9%
|
3.5%
|
San Antonio,
TX
|
5.6%
|
8.4%
|
3.2%
|
$
185,900
|
$
1,332
|
-0.4%
|
1.3%
|
10.4%
|
Orlando,
FL
|
9.8%
|
12.6%
|
4.8%
|
$
228,700
|
$
1,448
|
2.3%
|
3.1%
|
-9.6%
|
Cincinnati,
OH
|
6.7%
|
7.2%
|
2.5%
|
$
162,000
|
$
1,276
|
0.6%
|
1.8%
|
-6.8%
|
Cleveland,
OH
|
6.8%
|
6.2%
|
1.4%
|
$
141,500
|
$
1,140
|
-0.3%
|
-0.3%
|
-6.9%
|
Kansas City,
MO
|
9.3%
|
8.6%
|
3.2%
|
$
182,600
|
$
1,264
|
-1.0%
|
2.4%
|
-3.3%
|
Las Vegas,
NV
|
14.5%
|
11.9%
|
4.4%
|
$
266,200
|
$
1,305
|
3.2%
|
1.9%
|
n/a
|
Columbus,
OH
|
8.6%
|
6.8%
|
2.8%
|
$
182,600
|
$
1,335
|
1.5%
|
1.2%
|
-14.4%
|
Indianapolis,
IN
|
9.4%
|
6.2%
|
1.3%
|
$
154,100
|
$
1,195
|
0.0%
|
-0.3%
|
n/a
|
San Jose,
CA
|
26.0%
|
8.4%
|
7.9%
|
$
1,292,600
|
$
3,499
|
0.5%
|
-0.9%
|
46.2%
|
Austin, TX
|
6.1%
|
6.7%
|
3.3%
|
$
298,000
|
$
1,681
|
-1.4%
|
-1.0%
|
1.2%
|
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 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, 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/local-info/ and www.zillow.com/research/data.
ii Seattle metro last
led the nation in home value appreciation in June 2017, when home values there were
appreciating 14.8 percent year-over-year.
iii Historical norms is referring to the average rate of
appreciation.
iv Mortgage rates for a 30-year fixed mortgage.
v Month low was hit on July
18th.
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SOURCE Zillow