SEATTLE, Nov. 21, 2014 /PRNewswire/ -- The number of
homes for sale continued to increase across the U.S. in October, a
good sign for buyers – but with a catch. In many parts of the
country, supply increased more among the most expensive homes than
low- and mid-priced homes, according to the October Zillow® Real
Estate Market Reports[i].
The inventory of for-sale homes[ii] in the bottom home-price
tier rose year-over-year in 68.3 percent of the 353 total metro
areas analyzed by Zillow, while inventory in the top home price
tier rose in 82.2 percent, or 290 of the 353 markets analyzed.
Inventory of all homes for sale nationwide increased by 15.8
percent year-over-year.
In Denver, there were almost
four times as many homes available for sale in the upper price tier
(priced at $357,900 or more) than
there were homes priced in the lowest price tier (less than
$219,000).
The same was true in many other markets. Dallas, Atlanta, Phoenix and Nashville had at least two times more homes
for sale in the top tier than the bottom tier.
In 25 of the 35 largest metros analyzed, there were more homes
for sale this October than last October in all three price tiers.
In 14 of those metros, the increase in number of homes for sale was
in the double digits in all price tiers.
"Depending on their finances, it's likely that individual buyers
in the same market might be having completely different home buying
experiences. Even as conditions improve for buyers overall, it
remains a tough row to hoe for first-time buyers and lower-income
buyers, especially compared to their more well-off contemporaries,"
said Zillow Chief Economist Dr. Stan
Humphries. "We expect more demand to come from the lower end
of the market in coming years as millennials overtake Generation X
as the largest home-buying demographic. As this happens, builders
will be forced to build for these more entry-level buyers, and
inventory at the bottom tier should improve, however slowly."
Overall, median U.S. home values rose 6.4 percent from
October 2013 and 0.4 percent from
September, to a Zillow Home Value Index (ZHVI)[iii] $177,500. Both monthly and annual home value
gains were well below the faster paces recorded earlier in the
year. Rising inventory and slowing home-value growth are two signs
that the housing market is beginning to level off across the
nation.
As the market has cooled, buyers looking for less expensive
homes did find some relief in the hottest metro areas, including
San Diego, Los Angeles and the Bay Area. In San Francisco, the number of low-priced homes
on the market rose by 39 percent, but there were fewer high-priced
homes on the market. While inventory was still tight there in
October, the homes that were available spread evenly across the
price spectrum.
National rents were up in October from a year ago, up 3.5
percent to a Zillow Rent Index (ZRI)[iv] of $1,337. Month-over-month, national rents were
flat from September.
|
Zillow Home Value
Index
|
Change in
Inventory
|
Metropolitan
Area
|
October
2014 ZHVI
|
Year-Year %
Change in
ZHVI
|
YoY %
Change in
For-Sale
Inventory,
Overall
|
YoY %
Change in
For-Sale
Inventory,
Bottom Tier
|
YoY %
Change in
For-Sale
Inventory,
Middle Tier
|
YoY %
Change in
For-Sale
Inventory,
Top Tier
|
United
States
|
$177,500
|
6.4%
|
15.8%
|
N/A
|
N/A
|
N/A
|
New York,
NY
|
$381,600
|
5.0%
|
20.8%
|
19.7%
|
17.3%
|
25.1%
|
Los Angeles,
CA
|
$530,400
|
7.1%
|
19.8%
|
27.3%
|
24.7%
|
10.5%
|
Chicago,
IL
|
$188,400
|
6.4%
|
18.8%
|
6.5%
|
25.1%
|
23.2%
|
Dallas-Fort Worth,
TX
|
$149,300
|
6.3%
|
-7.9%
|
-12.4%
|
-18.3%
|
0.5%
|
Philadelphia,
PA
|
$202,900
|
5%
|
10.2%
|
15.9%
|
3.2%
|
12.6%
|
Houston,
TX
|
$151,200
|
12.2%
|
-14%
|
N/A
|
N/A
|
N/A
|
Washington,
DC
|
$361,100
|
5.2%
|
44.6%
|
52.9%
|
52.9%
|
31%
|
Miami-Fort
Lauderdale, FL
|
$206,000
|
14.1%
|
30.1%
|
48.7%
|
29.4%
|
22.7%
|
Atlanta,
GA
|
$152,900
|
13.8%
|
18.4%
|
19.5%
|
28.0%
|
11.9%
|
Boston, MA
|
$361,600
|
4.1%
|
16.7%
|
6%
|
18.2%
|
25%
|
San Francisco,
CA
|
$691,100
|
7.3%
|
14.2%
|
39.2%
|
4.8%
|
3.6%
|
Detroit,
MI
|
$113,700
|
10.9%
|
22.9%
|
2.7%
|
31.5%
|
34.7%
|
Riverside,
CA
|
$280,400
|
11.8%
|
41.5%
|
56.8%
|
54.3%
|
24.5%
|
Phoenix,
AZ
|
$198,500
|
3.7%
|
16.1%
|
1.8%
|
16.7%
|
23.9%
|
Seattle,
WA
|
$334,600
|
6.4%
|
19.9%
|
29.4%
|
21.7%
|
10.6%
|
Minneapolis-St Paul,
MN
|
$209,500
|
5.3%
|
37.6%
|
16.2%
|
42.4%
|
49.9%
|
San Diego,
CA
|
$463,800
|
5.3%
|
40.5%
|
56.9%
|
34.2%
|
34.9%
|
St. Louis,
MO
|
$129,300
|
1.7%
|
10.8%
|
-4.1%
|
15.0%
|
20.2%
|
Tampa, FL
|
$145,600
|
10.6%
|
14.3%
|
6.7%
|
18.7%
|
16.2%
|
Baltimore,
MD
|
$242,500
|
2.8%
|
32.2%
|
31.5%
|
37.6%
|
28.4%
|
Denver, CO
|
$270,300
|
10%
|
-18%
|
-31.5%
|
-37%
|
-0.2%
|
Pittsburgh,
PA
|
$125,300
|
7.3%
|
-0.2%
|
8.0%
|
-5.8%
|
-1.9%
|
Portland,
OR
|
$275,100
|
5.7%
|
9.8%
|
22.3%
|
7.9%
|
4.4%
|
Sacramento,
CA
|
$327,600
|
8.2%
|
41.7%
|
42.5%
|
36.7%
|
44.9%
|
San Antonio,
TX
|
$144,300
|
5.3%
|
-0.7%
|
N/A
|
N/A
|
N/A
|
Orlando,
FL
|
$168,400
|
12.3%
|
46.4%
|
54.6%
|
47.9%
|
41.7%
|
Cincinnati,
OH
|
$136,700
|
4.8%
|
2.5%
|
-4.2%
|
0.8%
|
11.1%
|
Cleveland,
OH
|
$121,100
|
3.4%
|
6.5%
|
4.3%
|
0.3%
|
14.7%
|
Kansas City,
MO
|
$137,300
|
5.5%
|
1%
|
-11.7%
|
-2.3%
|
17.4%
|
Las Vegas,
NV
|
$183,300
|
12.2%
|
36.6%
|
85.5%
|
25.1%
|
25.9%
|
San Jose,
CA
|
$821,800
|
9.8%
|
5.7%
|
7.8%
|
0.3%
|
9%
|
Columbus,
OH
|
$144,500
|
6.9%
|
-9.3%
|
-14.4%
|
-13.4%
|
-0.6%
|
Charlotte,
NC
|
$156,600
|
5.8%
|
-8.2%
|
-2.8%
|
-13.8%
|
-6.9%
|
Indianapolis,
IN
|
$127,900
|
-1.5%
|
4.9%
|
-8.3%
|
1%
|
20%
|
Austin, TX
|
$218,800
|
11.2%
|
-8.2%
|
N/A
|
N/A
|
N/A
|
About Zillow:
Zillow, Inc. (NASDAQ: Z) operates the
largest home-related marketplaces on mobile and the Web, with a
complementary portfolio of brands and products that help people
find vital information about homes, and connect with the best local
professionals. In addition, Zillow operates an industry-leading
economics and analytics bureau led by Zillow's Chief Economist Dr.
Stan Humphries. Dr. Humphries and his 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. Zillow also sponsors the
bi-annual Zillow Housing Confidence Index (ZHCI) which measures
consumer confidence in local housing markets, both currently and
over time. The Zillow, Inc. portfolio
includes Zillow.com®, Zillow Mobile, Zillow
Mortgages, Zillow Rentals, Zillow Digs®, Postlets®, Diverse
Solutions®, Mortech®, HotPads™, StreetEasy® and Retsly™. The
company is headquartered in Seattle.
Zillow.com, Zillow, Zestimate, Postlets, Mortech, Diverse
Solutions, StreetEasy and Digs are registered trademarks
of Zillow, Inc. HotPads and Retsly are 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/local-info/ and www.zillow.com/research/data.
[ii] Each week, a count of the number of single-family, condominium
and cooperative housing units listed for sale on Zillow is taken.
The median of these values within a month is calculated as the
monthly value. Because inventory can be seasonal, a seasonally
adjusted value is reported using a standard STL procedure. This
seasonally adjusted series is then smoothed using a three-month
rolling average. More information is available at
www.zillow.com/research.
[iii] The Zillow Home Value Index 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.
[iv] The Zillow Rent Index 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.
SOURCE Zillow, Inc.