SEATTLE, April 22, 2016 /PRNewswire/ -- Home values
are rising the fastest among entry-level homes in more than half of
the largest U.S. housing markets, according to first quarter
Zillow® Real Estate Market Reports.i Rising home values
in this segment of the market can be attributed to a lack of
supply, with 10 percent fewer homes for sale this year compared to
last.
The median value of entry-level homes, those in the bottom
thirdii of the market, rose the most over the past year
in Denver, up 20 percent, followed
by Portland and Dallas. There are 13 percent fewer entry-level
homes available in Denver than
there were a year ago. The number of entry-level homes available
declined the most in Portland.
There are 40 percent fewer entry-level homes available in
Portland than there were a year
ago.
The findings signal difficult times ahead for first-time
homebuyers looking to enter the market. Going into home-shopping
season this spring, buyers will find fewer homes in the bottom and
middle of the market -- the homes most affordable for first-time
buyers. The trend also highlights the different experiences buyers
are having in the recovering housing market. Buyers looking for the
most expensive homes will find slower price growth, a larger
selection, and less competition this spring than entry-level buyers
who are likely to face stiff competition, bidding wars, and very
few homes to choose from.
"It's going to be a tough home-buying market this spring,
especially for first-time buyers or even people looking to move up
into a slightly more expensive home," said Zillow Chief Economist
Dr. Svenja Gudell. "In order
to stand out in a competitive market, buyers should get
pre-approved for a loan, find an agent who has experience with
bidding wars, and consider coming in at the asking price, so the
seller knows they're serious."
In all of the largest U.S. housing markets, more than a third of
the homes available for sale are in the most expensive segment --
in the top third of the overall housing stock in the market. In
nine markets, top-tier homes make up more than half of the
inventory.
The most expensive homes on the market are more likely to have a
price cut, a signal that there's less demand for top-tier homes.
The share of top-tier listings with a price cut has increased 1.6
percentage points over the past year.
Metropolitan
Area
|
First Quarter
2016 Zillow
Home Value
Index (ZHVI)
|
Bottom-
Tier
Percent
Home
Value
Increase
|
Bottom-
Tier
Percent
Inventory
Change
|
Middle-
Tier
Percent
Home
Value
Increase
|
Middle-
Tier
Percent
Inventory
Change
|
Top-Tier
Percent
Home
Value
Increase
|
Top-Tier
Percent
Inventory
Change
|
United
States
|
$
186,200
|
n/a
|
-10.4%
|
n/a
|
-10.4%
|
n/a
|
-1.9%
|
New York,
NY
|
$
384,100
|
-0.8%
|
-9.0%
|
1.8%
|
-3.6%
|
3.5%
|
4.7%
|
Los Angeles-Long
Beach-Anaheim, CA
|
$
565,400
|
6.2%
|
-26.3%
|
6.2%
|
-11.3%
|
8.1%
|
1.3%
|
Chicago,
IL
|
$
193,800
|
0.7%
|
-14.2%
|
3.1%
|
-10.5%
|
1.0%
|
2.0%
|
Dallas-Fort Worth,
TX
|
$
182,100
|
14.7%
|
-27.5%
|
13.0%
|
-32.5%
|
11.2%
|
-10.1%
|
Philadelphia,
PA
|
$
204,400
|
0.9%
|
-2.0%
|
1.9%
|
-6.4%
|
1.3%
|
0.5%
|
Houston,
TX
|
$
172,100
|
7.7%
|
n/a
|
6.4%
|
n/a
|
2.8%
|
n/a
|
Washington,
DC
|
$
364,100
|
2.8%
|
-10.8%
|
2.0%
|
-0.7%
|
1.0%
|
2.7%
|
Miami-Fort
Lauderdale, FL
|
$
230,600
|
11.7%
|
-3.6%
|
10.5%
|
7.8%
|
6.3%
|
15.4%
|
Atlanta,
GA
|
$
163,000
|
7.3%
|
-11.5%
|
6.3%
|
-11.9%
|
5.5%
|
1.3%
|
Boston, MA
|
$
387,400
|
3.2%
|
-13.1%
|
4.9%
|
-4.8%
|
4.5%
|
14.6%
|
San Francisco,
CA
|
$
806,600
|
11.0%
|
-17.7%
|
11.5%
|
-6.7%
|
12.1%
|
1.7%
|
Detroit,
MI
|
$
123,100
|
-3.2%
|
2.0%
|
6.4%
|
-20.6%
|
2.8%
|
-3.6%
|
Riverside,
CA
|
$
304,200
|
10.0%
|
-3.8%
|
6.9%
|
-11.8%
|
2.7%
|
1.7%
|
Phoenix,
AZ
|
$
219,200
|
11.2%
|
-28.5%
|
8.4%
|
-11.6%
|
4.2%
|
-5.3%
|
Seattle,
WA
|
$
382,700
|
12.6%
|
-32.4%
|
11.7%
|
-24.4%
|
10.7%
|
-16.8%
|
Minneapolis-St Paul,
MN
|
$
219,400
|
5.2%
|
-7.9%
|
4.5%
|
-12.8%
|
2.1%
|
4.2%
|
San Diego,
CA
|
$
506,100
|
6.0%
|
-25.5%
|
5.7%
|
2.3%
|
5.2%
|
3.9%
|
St. Louis,
MO
|
$
141,900
|
2.3%
|
-3.0%
|
5.5%
|
-10.9%
|
5.4%
|
-6.6%
|
Tampa, FL
|
$
163,600
|
10.3%
|
-28.1%
|
8.9%
|
-20.4%
|
6.2%
|
-12.4%
|
Baltimore,
MD
|
$
244,800
|
1.3%
|
-3.9%
|
1.5%
|
-3.9%
|
0.6%
|
-3.2%
|
Denver, CO
|
$
333,500
|
20.3%
|
-12.7%
|
15.7%
|
5.4%
|
10.6%
|
-12.7%
|
Pittsburgh,
PA
|
$
126,700
|
2.9%
|
8.6%
|
1.8%
|
1.7%
|
3.0%
|
9.3%
|
Portland,
OR
|
$
322,000
|
16.2%
|
-39.5%
|
14.8%
|
-38.7%
|
13.5%
|
-19.7%
|
Charlotte,
NC
|
$
159,800
|
4.3%
|
-34.7%
|
5.1%
|
-34.5%
|
4.4%
|
-16.6%
|
Sacramento,
CA
|
$
339,700
|
13.0%
|
-22.3%
|
8.7%
|
-21.2%
|
7.1%
|
-8.6%
|
San Antonio,
TX
|
$
150,200
|
8.2%
|
n/a
|
6.7%
|
n/a
|
4.5%
|
n/a
|
Orlando,
FL
|
$
184,100
|
7.9%
|
-23.1%
|
7.9%
|
-16.0%
|
4.7%
|
-4.8%
|
Cincinnati,
OH
|
$
143,400
|
4.0%
|
-18.2%
|
3.9%
|
-20.0%
|
2.9%
|
-9.1%
|
Cleveland,
OH
|
$
125,500
|
-1.3%
|
-7.9%
|
2.5%
|
-11.0%
|
2.2%
|
0.8%
|
Las Vegas,
NV
|
$
203,200
|
9.1%
|
-11.1%
|
9.2%
|
-8.3%
|
5.8%
|
6.8%
|
Columbus,
OH
|
$
154,600
|
4.8%
|
-24.1%
|
5.7%
|
-13.7%
|
4.2%
|
-3.0%
|
Indianapolis,
IN
|
$
130,200
|
2.9%
|
-8.7%
|
2.7%
|
-22.4%
|
3.7%
|
-11.8%
|
San Jose,
CA
|
$
956,500
|
10.5%
|
-14.2%
|
12.6%
|
1.5%
|
12.1%
|
7.5%
|
Austin, TX
|
$
247,500
|
10.1%
|
n/a
|
8.7%
|
n/a
|
6.8%
|
n/a
|
Virginia Beach,
VA
|
$
210,900
|
0.2%
|
1.1%
|
1.1%
|
2.4%
|
1.1%
|
0.0%
|
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. 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 (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 Homes in each metropolitan region are assigned to the
bottom, middle or top tier of homes based on their estimated home
value. Each tier contains one-third of the homes in the metro
region, and the thresholds defining each tier are computed
separately for each metro.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/first-time-buyers-face-lack-of-inventory-and-higher-prices-300255861.html
SOURCE Zillow