SEATTLE, June 16, 2021 /PRNewswire/ -- Continued
torrid growth in the housing market paired with a long-awaited bump
in inventory in May, according to Zillow's® latest Market Report.
Home value appreciation continues to break records and typical time
on market is down to just six days. Meanwhile, rents are rising
quickly across the U.S., breaking out after growth was stymied
under the pandemic.
Inventory is finally showing signs of recovery at the national
level after nearly a year of steady decline. The 3.9%
month-over-month gain in May is the first uptick since July 2020 and only the fifth seen in the last 24
months. Of the top-50 largest U.S. markets, only six saw inventory
fall from April. Inventory across the U.S. is down 31.2% since
May 2020, an improvement over the
32.8% annual decline seen in April. New inventory has trended up
since mid-March.
"Despite extremely strong demand for homes in this red-hot
market, a steady increase in new listings appears to have finally
started turning the tides, bringing a long-anticipated turn toward
more choices for buyers," said Treh Manhertz, Zillow economist.
"Builders are rushing to churn out new homes, while widespread
vaccinations and improved confidence in the economy should help
current owners feel more comfortable listing their homes for
sale."
However, the typical time for a newly listed home to go under
contract dropped to just six days nationwide, one day shorter than
in April. Time on market is the shortest at three days in hot
Midwest metros of Cincinnati,
Kansas City and
Columbus.
Annual home appreciation reached 13.2% in May while monthly
growth was 1.7%, both of which are new records within Zillow data
reaching back through 1996. Typical home values now stand at
$287,148. Month over month growth
accelerated in 47 of the 50 largest U.S. markets and decelerated in
just three -- roughly matching the local market heat in
April.
Austin retained its lead in
annual appreciation with a blistering 30.5% increase over 2020,
followed by Phoenix (23.5%) and
Salt Lake City (20.6%). Even the
metros with the lowest annual appreciation -- Orlando, New
Orleans and Oklahoma City
-- still put up historically strong numbers above 9%.
Typical rents rose substantially, accelerating from 1.3% monthly
growth in April to 2.3% in May -- the largest monthly appreciation
since 2015. Rents hit $1,747 in May,
up 5.4% or $89 over last year. Rent
appreciation is especially strong in the Inland West. Of the 100
largest U.S. metros, the top eight for annual rent growth are
Boise, Phoenix, Spokane, Las
Vegas, Riverside,
Stockton, Fresno, and Albuquerque -- all with increases
higher than 15%.
The list of major cities with lower rents than last year shrank
again, as Seattle and Chicago clawed into the green. Only the
expensive coastal metros of San
Francisco, San Jose,
New York, Boston, and Washington D.C. remain in the
red.
Zillow economists forecast home values to increase by 14.9%
by May 2022, an upward revision from
the April forecast. Home sales are expected to reach 5.91 million
in 2021, a 4.8% increase over 2020.
Mortgage rates listed by third-party lenders on Zillow began May
at a monthly high of 2.69%, dropped down to a mere 2.63% on
May 7 and 10 -- close to all-time
lows -- and ended at a monthly high of 2.84%. Zillow's real-time
mortgage rates are based on thousands of custom mortgage quotes
submitted daily to anonymous borrowers on the Zillow Group
Mortgages site by third-party lenders and reflect recent changes in
the market.
Metropolitan
Area*
|
Zillow Home
Value Index
|
ZHVI -
YoY
Change
|
Zillow
Observed
Rent Index
|
ZORI -
YoY
Change
|
Inventory -
MoM
Change
|
Days on
Market
|
United
States
|
$287,148
|
13.2%
|
$1,747
|
5.4%
|
3.9%
|
6
|
New York,
NY
|
$536,211
|
10.6%
|
$2,541
|
-4.4%
|
3.8%
|
26
|
Los Angeles-Long
Beach-Anaheim, CA
|
$794,575
|
13.5%
|
$2,425
|
3.1%
|
2.4%
|
10
|
Chicago,
IL
|
$271,019
|
10.7%
|
$1,758
|
0.3%
|
7.5%
|
6
|
Dallas-Fort Worth,
TX
|
$297,044
|
14.4%
|
$1,551
|
8.0%
|
4.7%
|
13
|
Philadelphia,
PA
|
$294,147
|
14.7%
|
$1,662
|
5.2%
|
9.3%
|
7
|
Houston,
TX
|
$247,026
|
10.4%
|
$1,436
|
5.0%
|
0.2%
|
8
|
Washington,
DC
|
$504,257
|
12.8%
|
$2,008
|
-0.4%
|
13.6%
|
5
|
Miami-Fort
Lauderdale, FL
|
$344,370
|
10.7%
|
$2,086
|
11.1%
|
-6.4%
|
16
|
Atlanta,
GA
|
$286,047
|
15.0%
|
$1,696
|
13.6%
|
1.7%
|
6
|
Boston, MA
|
$573,182
|
13.1%
|
$2,528
|
-1.4%
|
11.2%
|
7
|
San Francisco,
CA
|
$1,255,661
|
11.6%
|
$2,867
|
-5.9%
|
5.9%
|
9
|
Detroit,
MI
|
$212,925
|
12.8%
|
$1,308
|
9.3%
|
8.7%
|
5
|
Riverside,
CA
|
$472,569
|
19.0%
|
$2,213
|
17.3%
|
4.3%
|
8
|
Phoenix,
AZ
|
$367,484
|
23.5%
|
$1,620
|
17.7%
|
1.6%
|
7
|
Seattle,
WA
|
$632,585
|
17.1%
|
$1,937
|
0.4%
|
13.7%
|
6
|
Minneapolis-St Paul,
MN
|
$337,255
|
11.1%
|
$1,578
|
2.3%
|
11.6%
|
9
|
San Diego,
CA
|
$754,557
|
19.6%
|
$2,420
|
8.8%
|
6.5%
|
7
|
St. Louis,
MO
|
$209,683
|
13.4%
|
$1,207
|
6.3%
|
7.1%
|
5
|
Tampa, FL
|
$276,685
|
17.7%
|
$1,676
|
15.0%
|
-2.0%
|
5
|
Baltimore,
MD
|
$336,738
|
12.1%
|
$1,695
|
8.0%
|
11.7%
|
5
|
Denver, CO
|
$529,969
|
15.2%
|
$1,760
|
6.6%
|
10.8%
|
4
|
Pittsburgh,
PA
|
$190,588
|
15.0%
|
$1,258
|
3.7%
|
8.9%
|
5
|
Portland,
OR
|
$496,162
|
15.1%
|
$1,630
|
6.0%
|
11.4%
|
5
|
Charlotte,
NC
|
$288,116
|
16.1%
|
$1,570
|
10.4%
|
2.5%
|
4
|
Sacramento,
CA
|
$516,489
|
17.1%
|
$1,985
|
12.7%
|
10.1%
|
6
|
San Antonio,
TX
|
$237,979
|
12.4%
|
$1,281
|
7.1%
|
0.8%
|
6
|
Orlando,
FL
|
$290,447
|
9.3%
|
$1,667
|
8.9%
|
-3.4%
|
6
|
Cincinnati,
OH
|
$221,607
|
14.9%
|
$1,285
|
7.5%
|
7.3%
|
3
|
Cleveland,
OH
|
$188,562
|
15.3%
|
$1,222
|
5.7%
|
8.2%
|
4
|
Kansas City,
MO
|
$244,048
|
15.9%
|
$1,205
|
7.1%
|
11.7%
|
3
|
Las Vegas,
NV
|
$339,768
|
12.7%
|
$1,527
|
17.3%
|
-0.4%
|
6
|
Columbus,
OH
|
$250,201
|
13.6%
|
$1,332
|
6.8%
|
11.3%
|
3
|
Indianapolis,
IN
|
$216,944
|
14.8%
|
$1,317
|
10.0%
|
8.5%
|
4
|
San Jose,
CA
|
$1,384,778
|
11.4%
|
$2,874
|
-4.9%
|
8.0%
|
11
|
Austin, TX
|
$458,885
|
30.5%
|
$1,554
|
9.3%
|
15.8%
|
9
|
Virginia Beach,
VA
|
$278,282
|
11.1%
|
$1,431
|
11.5%
|
9.4%
|
14
|
Nashville,
TN
|
$329,597
|
12.1%
|
$1,651
|
7.0%
|
|
4
|
Providence,
RI
|
$382,289
|
16.6%
|
$1,756
|
12.9%
|
9.0%
|
7
|
Milwaukee,
WI
|
$237,009
|
14.8%
|
$1,219
|
4.3%
|
22.5%
|
32
|
Jacksonville,
FL
|
$271,909
|
13.7%
|
$1,486
|
13.2%
|
1.3%
|
5
|
Memphis,
TN
|
$185,176
|
14.6%
|
$1,480
|
14.5%
|
9.1%
|
16
|
Oklahoma City,
OK
|
$179,507
|
9.9%
|
$1,174
|
6.9%
|
5.0%
|
4
|
Louisville-Jefferson
County, KY
|
$207,950
|
11.7%
|
$1,151
|
5.8%
|
6.6%
|
4
|
Hartford,
CT
|
$279,657
|
15.3%
|
$1,502
|
8.8%
|
10.6%
|
5
|
Richmond,
VA
|
$283,730
|
11.4%
|
$1,388
|
8.4%
|
10.0%
|
5
|
New Orleans,
LA
|
$233,885
|
9.5%
|
$1,277
|
8.8%
|
1.4%
|
7
|
Buffalo,
NY
|
|
|
$1,190
|
8.4%
|
13.4%
|
9
|
Raleigh,
NC
|
$333,255
|
14.0%
|
$1,510
|
10.4%
|
-1.4%
|
4
|
Birmingham,
AL
|
$198,513
|
11.1%
|
$1,191
|
8.0%
|
-1.9%
|
4
|
Salt Lake City,
UT
|
$486,928
|
20.6%
|
$1,488
|
10.9%
|
13.5%
|
5
|
|
*Table ordered by
market size
|
|
1
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/research/data.
|
2
Zillow Group Marketplace, Inc. is a licensed mortgage broker,
NMLS #1303160.
|
About Zillow Group
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(NASDAQ: Z and ZG) is reimagining real estate to make it easier to
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offer customers an on-demand experience for selling, buying,
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SOURCE Zillow