SEATTLE, June 24, 2016 /PRNewswire/ -- The bottom
third of the housing market has grown increasingly competitive,
with fewer price cuts on listed homes and faster growing home
values than more expensive homes, according to the May
Zillow® Real Estate Market Reportsi.
Home values for the most expensive homes on the market, which at
one point in February 2014 were
growing at an average of 7 percent annually, have stabilized. Those
homes have been gaining value at about 4 percent each year since
the beginning of 2015.
Home values at the bottom of the market continue to grow at
about 8 percent a year.
The stark differences between the top and bottom of the housing
market shed light on the two very different experiences home buyers
will face in most markets this summer. Buyers looking for the most
expensive homes will find slashed prices, more options and less
competition. It's a much different story for entry-level buyers,
who will be up against rising prices, low inventory and tough
competition, with homes selling over asking price in many of the
nation's hottest housing markets.
Over the past 18 months, the percent of listings with a price
cut among the most expensive third of homes has slightly increased,
while the percent of listings with a price cut among entry-level
homes have decreased. Since the beginning of 2015, top-tier homes
have had the most price cuts – another sign that top-tier buyers
are having an easier time shopping for homes in the current
market.
The rental market is also stabilizing at the high end. A recent
Zillow analysis found that rents aren't rising as quickly for
apartments in more expensive zip codes.
"The top of the market is starting to stabilize, and people are
beginning to take notice," said Zillow Chief Economist Dr.
Svenja Gudell. "Buyers looking for
entry-level homes are having bidding wars in many markets, while
it's not uncommon for high priced homes to stay on the market a few
months longer. The housing market is much more forgiving for
current homeowners looking to move into a bigger, more expensive
home. These buyers can be a bit more selective, and may even get a
good deal."
Buyers looking for a home at the top of the market will have
more to choose from than those looking for a home in the bottom
third of the market, which are often sought after by first-time
homebuyers. The number of homes for sale at the top of the market
has remained flat over the past year, while inventory in the
bottom-third is down almost 9 percent. Some markets are worse than
others; in Portland, there are
almost 40 percent fewer entry-level homes for sale than a year
ago.
Metropolitan
Area
|
Zillow Home Value
Indexii (ZHVI)
|
Top Tier % ZHVI
Change
|
Middle Tier % ZHVI
Change
|
Bottom Tier % ZHVI
Change
|
Top Tier YoY %
Inventory Change
|
Middle Tier YoY %
Inventory Change
|
Bottom Tier YoY %
Inventory Change
|
Zillow Rent
Indexiii (ZRI)
|
United
States
|
$ 186,100
|
4.0%
|
5.4%
|
7.9%
|
-0.5%
|
-9.7%
|
-8.9%
|
$ 1,407
|
New York/Northern New
Jersey
|
$ 386,000
|
5.1%
|
3.5%
|
3.0%
|
1.3%
|
-7.5%
|
-12.2%
|
$ 2,422
|
Los Angeles-Long
Beach-Anaheim, CA
|
$ 571,200
|
6.8%
|
6.1%
|
7.2%
|
-3.0%
|
-9.7%
|
-17.9%
|
$ 2,559
|
Chicago,
IL
|
$ 197,300
|
2.2%
|
3.1%
|
4.8%
|
-5.9%
|
-23.3%
|
-15.3%
|
$ 1,650
|
Dallas-Fort Worth,
TX
|
$ 187,900
|
9.5%
|
12.5%
|
21.6%
|
-10.1%
|
-34.9%
|
-32.1%
|
$ 1,535
|
Philadelphia,
PA
|
$ 208,000
|
2.0%
|
3.4%
|
3.4%
|
-5.0%
|
-12.6%
|
0.7%
|
$ 1,576
|
Houston,
TX
|
$ 172,000
|
2.4%
|
8.2%
|
13.6%
|
n/a
|
n/a
|
n/a
|
$ 1,586
|
Washington,
DC
|
$ 369,000
|
1.7%
|
2.3%
|
4.0%
|
-3.3%
|
-10.3%
|
-18.3%
|
$ 2,122
|
Miami-Fort
Lauderdale, FL
|
$ 234,300
|
6.1%
|
10.3%
|
12.5%
|
14.3%
|
12.6%
|
3.5%
|
$ 1,880
|
Atlanta,
GA
|
$ 165,900
|
6.5%
|
7.8%
|
10.0%
|
-2.8%
|
-18.3%
|
-14.5%
|
$ 1,305
|
Boston, MA
|
$ 392,400
|
5.3%
|
5.7%
|
5.0%
|
-1.0%
|
-23.6%
|
-34.5%
|
$ 2,288
|
San Francisco,
CA
|
$ 810,000
|
8.9%
|
9.0%
|
9.3%
|
11.8%
|
-2.5%
|
-9.5%
|
$ 3,381
|
Detroit,
MI
|
$ 126,500
|
4.4%
|
6.0%
|
9.4%
|
-13.7%
|
-26.9%
|
-14.0%
|
$ 1,179
|
Riverside,
CA
|
$ 308,100
|
3.8%
|
7.4%
|
10.0%
|
-1.5%
|
-11.9%
|
-6.1%
|
$ 1,730
|
Phoenix,
AZ
|
$ 220,400
|
4.7%
|
8.9%
|
11.4%
|
2.8%
|
12.6%
|
2.8%
|
$ 1,290
|
Seattle,
WA
|
$ 388,000
|
12.2%
|
11.9%
|
11.5%
|
-18.3%
|
-20.8%
|
-29.2%
|
$ 2,007
|
Minneapolis-St Paul,
MN
|
$ 226,000
|
3.3%
|
5.8%
|
6.6%
|
1.5%
|
-5.9%
|
0.7%
|
$ 1,537
|
San Diego,
CA
|
$ 511,200
|
4.5%
|
6.4%
|
9.2%
|
13.5%
|
13.1%
|
0.1%
|
$ 2,401
|
St. Louis,
MO
|
$ 142,400
|
5.9%
|
5.5%
|
4.8%
|
-6.9%
|
-16.8%
|
-10.2%
|
$ 1,143
|
Tampa, FL
|
$ 166,700
|
7.0%
|
9.5%
|
12.2%
|
-4.4%
|
-9.0%
|
-21.4%
|
$ 1,325
|
Baltimore,
MD
|
$ 250,900
|
1.2%
|
2.1%
|
1.9%
|
-7.7%
|
-12.6%
|
-13.1%
|
$ 1,735
|
Denver, CO
|
$ 335,400
|
8.2%
|
13.1%
|
17.7%
|
-2.0%
|
12.9%
|
-1.3%
|
$ 1,999
|
Pittsburgh,
PA
|
$ 130,400
|
4.3%
|
4.6%
|
4.9%
|
7.8%
|
-7.2%
|
14.8%
|
$ 1,129
|
Portland,
OR
|
$ 326,800
|
14.3%
|
14.8%
|
15.9%
|
-16.6%
|
-37.6%
|
-39.3%
|
$ 1,752
|
Charlotte,
NC
|
$ 161,200
|
5.0%
|
6.3%
|
6.4%
|
-0.9%
|
-27.3%
|
-18.9%
|
$ 1,246
|
Sacramento,
CA
|
$ 339,900
|
6.2%
|
7.6%
|
13.5%
|
-6.8%
|
-19.7%
|
-20.5%
|
$ 1,659
|
San Antonio,
TX
|
$ 151,700
|
5.5%
|
7.3%
|
9.2%
|
n/a
|
n/a
|
n/a
|
$ 1,316
|
Orlando,
FL
|
$ 185,400
|
4.4%
|
7.6%
|
10.3%
|
-3.4%
|
-15.1%
|
-26.9%
|
$ 1,365
|
Cincinnati,
OH
|
$ 143,400
|
3.3%
|
4.7%
|
3.9%
|
-10.2%
|
-29.8%
|
-22.3%
|
$ 1,241
|
Cleveland,
OH
|
$ 128,300
|
3.0%
|
4.1%
|
1.5%
|
-12.2%
|
-22.8%
|
-22.0%
|
$ 1,141
|
Las Vegas,
NV
|
$ 202,400
|
5.3%
|
7.7%
|
7.7%
|
7.9%
|
-10.6%
|
-7.8%
|
$ 1,238
|
Columbus,
OH
|
$ 156,400
|
2.7%
|
4.9%
|
7.2%
|
-4.4%
|
-15.9%
|
-16.9%
|
$ 1,290
|
Indianapolis,
IN
|
$ 129,800
|
-1.8%
|
-3.3%
|
n/a
|
-18.2%
|
-29.0%
|
-13.7%
|
$ 1,192
|
San Jose,
CA
|
$ 958,100
|
8.5%
|
11.2%
|
10.7%
|
5.7%
|
7.7%
|
6.0%
|
$ 3,512
|
Austin, TX
|
$ 251,300
|
7.0%
|
9.0%
|
11.6%
|
n/a
|
n/a
|
n/a
|
$ 1,711
|
Virginia Beach,
VA
|
$ 213,400
|
1.7%
|
1.7%
|
1.8%
|
1.5%
|
1.9%
|
-0.2%
|
$ 1,414
|
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. Sviienja
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 biannual
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 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 (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.
iii 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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/entry-level-prices-continue-to-soar-while-top-of-the-market-stabilizes-300289797.html
SOURCE Zillow