SEATTLE, June 23, 2015 /PRNewswire/ -- Bidding
wars are helping drive up home values in the nation's hottest
housing markets this home shopping season, even as home values
level off far below the record levels set during the real estate
bubble in quieter markets, according to the May Zillow® Real Estate
Market Reports[i].
The country by-and-large rode the same big roller coaster
through the housing bubble, bust, and recovery. May's report shows
local markets diverging, with some chugging along, some stalled out
and some continuing to accelerate amid rising prices and
competition.
"What we're seeing is the passing of the baton – as mortgage
rates begin to rise and incomes and household formation rates
increase – from a stimulus-driven housing market to one driven by
fundamentals," said Zillow Chief Economist Dr. Stan Humphries. "This transition from housing
recovery to a more normal market is a good thing in the long-term,
but we can expect some bumps along the way. In the end, increasing
household formation and stronger income growth should be able to
overcome the headwind of rising mortgage rates and return markets
to health."
U.S. home values grew at an annual rate of 3 percent in May, to
a Zillow Home Value Index[ii] of $179,200. National home values were still nearly
9 percent below the housing-bubble peak of $196,400, a record set in April 2007, before the housing bust drove the
country into a prolonged recession.
Denver home values grew 14.7
percent year-over-year in May, to a median just under $300,000. Home values have never been as high
there. San Jose metro home values
topped out at $883,200, higher even
than San Francisco's median of
$746,600. Both Bay Area markets saw double-digit growth
driven by low interest rates, low inventory, and high job
growth.
Florida markets in Tampa, Miami-Fort
Lauderdale and Orlando
remained more than 30 percent under their peak. While home values
continued to grow there, they have been growing more slowly each
month since last summer. In all three markets, home values are
growing at around half the pace they were a year ago.
Las Vegas home values slowed to
a year-over-year growth rate of just 6.3 percent, and remained 38.6
percent below the peak set in 2006.
Rents continued to outpace home values in 20 of the 35 largest
metro areas. The Zillow Rent Index (ZRI) [iii] rose 4.3 percent
year-over-year, to $1,367.
Some markets are seeing rapidly rising rents even as home values
appreciate more slowly. Kansas
City median home values were essentially flat, rising
two-tenths of a percent in the past year. But rents were up more
than 10 percent.
Over the next year, home value growth is expected to slow even
further, to 2.2 percent annually, according to the Zillow Home
Value Forecast[iv]. In 2014, home values rose 4.9 percent.
|
Zillow Home Value
Index (ZHVI)
|
Zillow Rent Index
(ZRI)
|
Zillow Home Value
Forecast (ZHVF)
|
Metro
|
May 2015
ZHVI
|
Year-over-Year %
Change in ZHVI
|
May 2015
ZRI
|
Year-over-Year %
Change in ZRI
|
Expected
Year-over-year % ZHVI Change for May 2016
|
United
States
|
$179,200
|
3.0%
|
$ 1,367
|
4.3%
|
2.2%
|
New York – Northern
New Jersey
|
$378,800
|
-0.1%
|
$ 2,357
|
2.3%
|
-1.2%
|
Los Angeles,
CA
|
$536,000
|
2.8%
|
$ 2,505
|
5.6%
|
0.9%
|
Chicago,
IL
|
$188,000
|
1.4%
|
$ 1,620
|
-0.4%
|
1.9%
|
Dallas-Fort Worth,
TX
|
$162,200
|
11.7%
|
$ 1,470
|
5.7%
|
7.0%
|
Philadelphia,
PA
|
$200,400
|
0.3%
|
$ 1,574
|
3.1%
|
0.6%
|
Houston,
TX
|
$158,900
|
7.7%
|
$ 1,518
|
5.9%
|
3.3%
|
Washington,
DC
|
$359,700
|
0.4%
|
$ 2,107
|
2.1%
|
-0.6%
|
Miami-Fort
Lauderdale, FL
|
$216,000
|
9.4%
|
$ 1,802
|
3.5%
|
1.2%
|
Atlanta,
GA
|
$155,900
|
6.5%
|
$ 1,251
|
5.2%
|
3.2%
|
Boston, MA
|
$361,600
|
0.2%
|
$ 2,191
|
5.5%
|
-0.9%
|
San Francisco,
CA
|
$746,600
|
10.7%
|
$ 3,198
|
15.0%
|
5.3%
|
Detroit,
MI
|
$115,300
|
5.4%
|
$ 1,123
|
6.0%
|
3.2%
|
Riverside,
CA
|
$286,100
|
5.2%
|
$ 1,677
|
3.8%
|
5.2%
|
Phoenix,
AZ
|
$202,500
|
4.6%
|
$ 1,256
|
5.6%
|
2.8%
|
Seattle,
WA
|
$352,500
|
7.5%
|
$ 1,867
|
6.4%
|
6.7%
|
Minneapolis-St Paul,
MN
|
$211,400
|
2.8%
|
$ 1,517
|
0.4%
|
1.9%
|
San Diego,
CA
|
$477,400
|
4.2%
|
$ 2,334
|
5.1%
|
1.2%
|
St. Louis,
MO
|
$134,400
|
3.9%
|
$ 1,135
|
4.9%
|
3.1%
|
Tampa, FL
|
$150,900
|
6.5%
|
$ 1,283
|
4.1%
|
2.5%
|
Baltimore,
MD
|
$241,000
|
-0.3%
|
$ 1,736
|
2.9%
|
-0.3%
|
Denver, CO
|
$297,700
|
14.7%
|
$ 1,890
|
12.6%
|
5.7%
|
Pittsburgh,
PA
|
$124,000
|
1.7%
|
$ 1,099
|
0.6%
|
1.6%
|
Portland,
OR
|
$286,200
|
5.5%
|
$ 1,629
|
9.8%
|
5.4%
|
Sacramento,
CA
|
$339,100
|
6.1%
|
$ 1,664
|
6.5%
|
5.2%
|
San Antonio,
TX
|
$148,100
|
2.2%
|
$ 1,321
|
4.8%
|
3.7%
|
Orlando,
FL
|
$171,200
|
4.9%
|
$ 1,326
|
2.5%
|
2.7%
|
Cincinnati,
OH
|
$136,900
|
1.8%
|
$ 1,255
|
6.6%
|
2.4%
|
Cleveland,
OH
|
$120,600
|
0.6%
|
$ 1,160
|
2.6%
|
2.4%
|
Kansas City,
MO
|
$140,200
|
0.2%
|
$ 1,247
|
10.2%
|
3.7%
|
Las Vegas,
NV
|
$187,700
|
6.3%
|
$ 1,203
|
2.2%
|
4.9%
|
San Jose,
CA
|
$883,200
|
11.9%
|
$ 3,338
|
13.2%
|
4.7%
|
Columbus,
OH
|
$146,900
|
3.2%
|
$ 1,262
|
2.5%
|
2.8%
|
Charlotte,
NC
|
$159,800
|
4.0%
|
$ 1,251
|
6.0%
|
2.7%
|
Indianapolis,
IN
|
$131,100
|
1.0%
|
$ 1,201
|
2.0%
|
3.9%
|
Austin, TX
|
$228,900
|
7.2%
|
$ 1,686
|
5.6%
|
3.7%
|
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. Stan
Humphries. In 2015, Dr. Humphries co-wrote and published the
New York Times' bestselling "Zillow
Talk: The New Rules of Real Estate." 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. Launched in 2006, Zillow is
owned and operated by Zillow Group, Inc. (NASDAQ: Z), and
headquartered in Seattle.
Zillow and Zestimate are registered 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] 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.
[iii] 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
[iv] This expectation is based on the Zillow Home Value
Forecast, which uses data from past home value trends and current
market conditions, including leading indicators like home sales,
months of housing inventory supply and unemployment, to predict
home values over the next 12 months for the nation and for more
than 250 markets across the country.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/real-estate-becomes-local-again-national-trends-less-prevalent-on-a-market-level-300103050.html
SOURCE Zillow