SEATTLE, Sept. 22, 2016 /PRNewswire/ -- U.S. home values
are up 5 percent over the past year, to a Zillow Home Value
Indexi (ZHVI) of $188,100,
according to the August Zillow® Real Estate Market
Reportsii.
Home values have been growing at a 5 percent annual rate since
the beginning of the year. The most recent income data released by
the Censusiii shows incomes rising by 5.2 percent, which
is good news for those looking to break into the housing market.
For the first time since 2011, incomes have been appreciating
faster than home values.
Inventory is beginning to pick back up from the lows experienced
at the beginning of the year, but there are still 5 percent fewer
homes for sale than a year ago. Going forward, as more homes start
to become available, home value growth may ease. Zillow predicts
home value growth to slow down to a 2.7 percent appreciation rate
by this time next year.
For the sixth straight month, Portland, Dallas, Seattle and Denver reported the highest year-over-year
home value appreciation among the 35 largest U.S. metros, with home
value growth in the double-digits. In Portland, home values rose almost 15 percent,
to a median home value of $338,900.
While home values continue to rise in tech-centers San Francisco and San Jose, they've slowed considerably since
last year. Median home values in both markets are up about 6
percent over the past year, compared to over 12 percent in 2015. No
longer are these two metros among the top appreciating U.S. housing
markets.
"The housing market is starting to smooth out ever-so-slightly,
as the peak home shopping season winds down," said Zillow Chief
Economist Dr. Svenja Gudell. "This
is good news for frenzied buyers tired of tight inventory, rapidly
rising home prices and intense competition. Inventory, while still
down nationwide and in most areas, is actually starting to rise in
a handful of markets, including the Bay Area, Texas and parts of the Southwest. Rent growth
has slowed considerably from just a few years ago, giving renters a
chance to save enough to buy a home. But make no mistake, it's
still tough out there for buyers, especially in Western markets
like Seattle, Denver and Portland that have strong job growth. Things
won't switch from a sellers' market to a buyers' market overnight,
but conditions are starting to improve."
Rents continue to rise, though not as quickly as home values.
Last year at this time, rents were up over 6 percent, but are now
appreciating by just 1.7 percent, to a Zillow Rent
Indexiv (ZRI) of $1,405.
Of the 35 largest U.S. metros, Seattle, Portland, Sacramento and San
Diego reported the highest year-over-year rent appreciation.
Rents in Seattle have seen the
fastest annual appreciation for the third month in a row, up almost
10 percent over the past year to a median of $2,067 per month.
In Portland, the median rent
rose to $1,777 per month, up 7
percent over the past year. In Sacramento and San
Diego, rents are up 5.5 and 5 percent, respectively.
Metropolitan
Area
|
Zillow
Home
Value Index
(ZHVI)
|
Year-Over-Year
ZHVI Change
|
Zillow Rent Index
(ZRI)
|
Year-Over-Year ZRI
Change
|
Year-Over-Year
Inventory Change
|
United
States
|
$
188,100
|
5.1%
|
$
1,405
|
1.7%
|
-5.4%
|
New York/Northern New
Jersey
|
$
389,000
|
3.3%
|
$
2,399
|
2.5%
|
-11.7%
|
Los Angeles-Long
Beach-Anaheim, CA
|
$
574,600
|
5.2%
|
$
2,593
|
4.7%
|
0.6%
|
Chicago,
IL
|
$
201,300
|
4.5%
|
$
1,643
|
-0.2%
|
-11.5%
|
Dallas-Fort Worth,
TX
|
$
193,900
|
12.0%
|
$
1,543
|
3.6%
|
-20.6%
|
Philadelphia,
PA
|
$
210,000
|
2.9%
|
$
1,578
|
1.3%
|
-13.3%
|
Houston,
TX
|
$
174,000
|
7.1%
|
$
1,576
|
0.5%
|
7.4%
|
Washington,
DC
|
$
370,100
|
2.1%
|
$
2,121
|
0.5%
|
-15.0%
|
Miami-Fort
Lauderdale,
FL
|
$
239,300
|
9.0%
|
$
1,885
|
4.2%
|
14.1%
|
Atlanta,
GA
|
$
168,400
|
7.5%
|
$
1,314
|
3.5%
|
-8.6%
|
Boston, MA
|
$
398,200
|
5.6%
|
$
2,310
|
3.9%
|
-26.4%
|
San Francisco,
CA
|
$
809,500
|
6.0%
|
$
3,406
|
4.8%
|
1.8%
|
Detroit,
MI
|
$
129,600
|
6.8%
|
$
1,171
|
2.5%
|
-17.8%
|
Riverside,
CA
|
$
313,400
|
7.0%
|
$
1,736
|
3.4%
|
-0.7%
|
Phoenix,
AZ
|
$
223,100
|
7.5%
|
$
1,297
|
4.2%
|
8.3%
|
Seattle,
WA
|
$
397,800
|
11.3%
|
$
2,067
|
9.7%
|
-6.0%
|
Minneapolis-St
Paul,
MN
|
$
229,300
|
6.2%
|
$
1,540
|
2.5%
|
-2.7%
|
San Diego,
CA
|
$
516,200
|
5.2%
|
$
2,427
|
4.9%
|
13.0%
|
St. Louis,
MO
|
$
144,000
|
5.3%
|
$
1,128
|
0.5%
|
-13.2%
|
Tampa, FL
|
$
170,500
|
9.8%
|
$
1,332
|
3.3%
|
-10.1%
|
Baltimore,
MD
|
$
252,700
|
2.5%
|
$
1,731
|
0.6%
|
-10.4%
|
Denver, CO
|
$
341,400
|
10.7%
|
$
2,013
|
4.1%
|
7.4%
|
Pittsburgh,
PA
|
$
131,200
|
4.6%
|
$
1,100
|
-0.5%
|
3.7%
|
Portland,
OR
|
$
338,900
|
14.8%
|
$
1,777
|
7.4%
|
-12.4%
|
Charlotte,
NC
|
$
164,400
|
7.1%
|
$
1,237
|
1.7%
|
-10.3%
|
Sacramento,
CA
|
$
345,100
|
7.1%
|
$
1,681
|
5.5%
|
-6.4%
|
San Antonio,
TX
|
$
153,600
|
6.4%
|
$
1,317
|
0.9%
|
25.2%
|
Orlando,
FL
|
$
189,000
|
8.1%
|
$
1,372
|
2.8%
|
-10.8%
|
Cincinnati,
OH
|
$
145,100
|
4.6%
|
$
1,239
|
0.2%
|
-15.7%
|
Cleveland,
OH
|
$
129,000
|
3.4%
|
$
1,146
|
1.3%
|
-12.7%
|
Kansas City,
MO
|
$
150,700
|
5.2%
|
$
1,235
|
2.3%
|
-23.6%
|
Las Vegas,
NV
|
$
206,800
|
7.8%
|
$
1,237
|
2.0%
|
32.7%
|
Columbus,
OH
|
$
157,000
|
3.0%
|
$
1,293
|
2.0%
|
-16.6%
|
Indianapolis,
IN
|
$
131,700
|
-1.6%
|
$
1,196
|
0.4%
|
-24.7%
|
San Jose,
CA
|
$
945,700
|
5.8%
|
$
3,517
|
3.8%
|
12.9%
|
Austin, TX
|
$
255,900
|
8.6%
|
$
1,713
|
2.0%
|
11.1%
|
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 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.
ii 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.
iii Data released by The Census Current Population
Survey/Annual March Socioeconomic Supplement shows household
incomes appreciated by 5.2 percent in 2015.
iv 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/home-values-maintain-steady-growth-while-rents-slow-dramatically-300332325.html
SOURCE Zillow