SEATTLE, Sept. 16, 2021 /PRNewswire/ -- Runaway
monthly increases in home values and rents tempered in August,
according to the latest Zillow® market report1, paving
the way for a strong but more manageable housing market come fall.
Another month of rising inventory and more for-sale listings taking
price cuts are giving buyers more options and potentially less
stress as they shop for their next home.
Home value appreciation had been accelerating on a monthly basis
since January but finally eased off the throttle, moderating from
1.97% month-over-month growth in July down to 1.75% growth in
August. While this will be good news for buyers looking for any
signs of relief, it still represents the third-largest monthly
growth in Zillow records.
"The strong recovery of inventory and initial lift off the gas
pedal for home value appreciation is indicative of balance
returning to the market," said Nicole
Bachaud, economic data analyst at Zillow. "But, the
major demand drivers that have pushed the market to extremes this
year are still present — we're moving from a white-hot midsummer to
somewhere closer to red hot as we head into the fall."
The deceleration of home value growth is widespread, with 43 of
the 50 largest major metros seeing appreciation slow down in
August, compared to 20 in July. The largest drop-offs were in
Buffalo, San Diego, San Francisco and Austin.
Still, home values are up a record-breaking 17.7% ($45,557) from a year ago, bringing the typical
U.S. home value to $303,288. Top
metros for annual growth are Austin (44.8%), Phoenix (31.8%), Salt Lake City (27.9%) and San Diego (26.9%).
Available housing inventory continued to rise for the fourth
straight month, growing 4.1% over July and cutting the annual
deficit to 22.7%, up from a low of -33% year over year low in
April. For-sale listings rose the most month over month in the
Midwest. Meanwhile, Austin and
Washington, D.C., now have more
available inventory than they did one year ago.
The share of listings with a price cut rose for the fourth
consecutive month, further evidence of a market returning to
balance. The share of listings with a price cut grew 1.9 percentage
points in August, with a total of 12.3% of listings in the U.S.
seeing a price reduction before an offer is accepted. In
August 2019, the total share was
17.4%.
"Another month of rising for-sale inventory gives shoppers more
options to choose from and less competition, which should help
reduce bidding wars and further moderate rampant price hikes,"
Bachaud said. "A slightly less frenzied market means buyers have a
much better chance to land the home they're bidding on, and may
even see a price drop on their saved listings, but keep in mind the
market is still much hotter than normal for this time of year."
Home sales have been rising monthly since March and continued to
grow, with monthly sales ticking up slightly over July to stand
3.9% above last August. Looking forward, strong recent sales
activity means Zillow economists are now expecting 5.93
million sales in 2021, a 5.1% increase over a historically strong
2020.
In the rental market, monthly rent growth had been accelerating
since January, but finally took a step back in August, decelerating
to 1.7% growth in August from July's record-high 2%. Despite this,
August's 11.5% annual appreciation is the largest in Zillow records
going back to 2015. Typical U.S. rents measured by the Zillow
Observed Rent Index (ZORI) are $1,874, nearly $200
higher than this time last year.
Rents are up the most from last year across the Sun Belt,
especially in Las Vegas (24.9%),
Phoenix (24.8%), Tampa (24.7%) and Riverside (20.6%). Rents fell month over month
in Kansas City and Richmond, and stayed flat in
Cincinnati.
Metropolitan
Area*
|
Zillow Home
Value Index
(ZHVI)
|
ZHVI –
Year Over
Year
Change
|
ZHVI –
Month
Over
Month
Change
|
Inventory –
MoM
Change
|
Zillow
Observed
Rent Index
(ZORI)
|
ZORI –
Month
Over
Month
Change
|
United
States
|
$303,288
|
17.7%
|
1.8%
|
4.1%
|
$1,874
|
1.7%
|
New York,
NY
|
$561,677
|
14.0%
|
1.4%
|
0.4%
|
$2,693
|
1.7%
|
Los Angeles–Long
Beach–Anaheim, CA
|
$837,312
|
19.4%
|
1.6%
|
2.1%
|
$2,630
|
2.0%
|
Chicago,
IL
|
$282,568
|
14.0%
|
1.5%
|
3.7%
|
$1,721
|
0.9%
|
Dallas–Fort Worth,
TX
|
$320,045
|
21.0%
|
2.6%
|
4.0%
|
$1,684
|
2.0%
|
Philadelphia,
PA
|
$306,033
|
17.0%
|
1.2%
|
2.7%
|
$1,705
|
1.5%
|
Houston,
TX
|
$263,096
|
16.8%
|
2.3%
|
4.8%
|
$1,519
|
1.1%
|
Washington,
D.C.
|
$516,846
|
13.9%
|
0.7%
|
1.6%
|
$2,125
|
1.6%
|
Miami–Fort
Lauderdale, FL
|
$364,216
|
16.4%
|
2.1%
|
-2.7%
|
$2,343
|
3.0%
|
Atlanta,
GA
|
$308,095
|
21.5%
|
2.5%
|
3.6%
|
$1,827
|
3.0%
|
Boston, MA
|
$599,735
|
16.8%
|
1.3%
|
-1.0%
|
$2,532
|
0.7%
|
San Francisco,
CA
|
$1,331,868
|
17.9%
|
1.5%
|
1.9%
|
$3,092
|
0.7%
|
Detroit,
MI
|
$223,461
|
18.4%
|
1.5%
|
9.5%
|
$1,397
|
1.3%
|
Riverside,
CA
|
$506,174
|
26.6%
|
2.7%
|
6.2%
|
$2,393
|
2.0%
|
Phoenix,
AZ
|
$401,673
|
31.8%
|
2.5%
|
3.6%
|
$1,806
|
2.7%
|
Seattle,
WA
|
$681,045
|
23.2%
|
2.0%
|
1.7%
|
$2,194
|
1.9%
|
Minneapolis–St. Paul,
MN
|
$350,110
|
14.5%
|
1.2%
|
6.0%
|
$1,590
|
0.3%
|
San Diego,
CA
|
$802,680
|
26.9%
|
1.9%
|
2.6%
|
$2,649
|
2.2%
|
St. Louis,
MO
|
$218,878
|
15.8%
|
1.0%
|
4.8%
|
$1,191
|
0.5%
|
Tampa, FL
|
$303,374
|
25.9%
|
3.1%
|
4.2%
|
$1,876
|
3.8%
|
Baltimore,
MD
|
$347,014
|
13.9%
|
1.0%
|
4.3%
|
$1,775
|
1.1%
|
Denver, CO
|
$563,145
|
21.5%
|
1.8%
|
5.4%
|
$1,903
|
1.6%
|
Pittsburgh,
PA
|
$199,145
|
19.3%
|
0.9%
|
5.2%
|
$1,218
|
1.7%
|
Portland,
OR
|
$523,642
|
19.9%
|
1.7%
|
3.5%
|
$1,773
|
1.5%
|
Charlotte,
NC
|
$311,157
|
22.2%
|
2.6%
|
4.7%
|
$1,662
|
2.1%
|
Sacramento,
CA
|
$554,083
|
25.2%
|
2.6%
|
|
$2,152
|
1.0%
|
San Antonio,
TX
|
$256,183
|
18.5%
|
2.2%
|
3.5%
|
$1,374
|
2.6%
|
Orlando,
FL
|
$314,117
|
16.6%
|
2.5%
|
2.5%
|
$1,798
|
3.0%
|
Cincinnati,
OH
|
$232,065
|
16.9%
|
1.5%
|
7.1%
|
$1,356
|
0.0%
|
Cleveland,
OH
|
$197,278
|
18.1%
|
1.3%
|
7.8%
|
$1,261
|
0.4%
|
Kansas City,
MO
|
$253,659
|
18.2%
|
1.1%
|
5.0%
|
$1,262
|
-0.7%
|
Las Vegas,
NV
|
$371,092
|
23.3%
|
2.6%
|
7.0%
|
$1,718
|
3.1%
|
Columbus,
OH
|
$261,324
|
16.2%
|
1.2%
|
6.9%
|
$1,359
|
1.1%
|
Indianapolis,
IN
|
$229,575
|
17.2%
|
1.4%
|
5.8%
|
$1,391
|
1.3%
|
San Jose,
CA
|
$1,478,348
|
19.0%
|
1.5%
|
-0.8%
|
$3,126
|
1.4%
|
Austin, TX
|
$514,711
|
44.8%
|
3.2%
|
6.3%
|
$1,754
|
3.2%
|
Virginia Beach,
VA
|
$288,446
|
13.6%
|
1.3%
|
2.2%
|
$1,527
|
1.5%
|
Nashville,
TN
|
$356,137
|
18.6%
|
2.6%
|
|
$1,768
|
2.7%
|
Providence,
RI
|
$403,984
|
20.8%
|
1.9%
|
6.2%
|
$1,785
|
0.7%
|
Milwaukee,
WI
|
$252,643
|
17.4%
|
1.1%
|
7.7%
|
$1,192
|
1.4%
|
Jacksonville,
FL
|
$294,471
|
21.5%
|
2.6%
|
3.9%
|
$1,629
|
2.7%
|
Memphis,
TN
|
$194,724
|
16.9%
|
1.4%
|
5.2%
|
$1,535
|
1.1%
|
Oklahoma City,
OK
|
$187,885
|
13.0%
|
1.4%
|
8.3%
|
$1,228
|
1.5%
|
Louisville–Jefferson
County, KY
|
$215,947
|
13.6%
|
1.0%
|
8.0%
|
$1,145
|
0.2%
|
Hartford,
CT
|
$291,015
|
17.5%
|
1.1%
|
2.3%
|
$1,604
|
0.4%
|
Richmond,
VA
|
$291,685
|
13.4%
|
0.9%
|
1.7%
|
$1,429
|
-0.4%
|
New Orleans,
LA
|
$243,248
|
12.2%
|
1.4%
|
4.6%
|
$1,319
|
1.9%
|
Buffalo,
NY
|
$225,638
|
24.6%
|
1.3%
|
8.1%
|
$1,190
|
1.1%
|
Raleigh,
NC
|
$363,693
|
23.4%
|
3.6%
|
1.5%
|
$1,647
|
2.5%
|
Birmingham,
AL
|
$206,767
|
14.6%
|
1.5%
|
5.0%
|
$1,305
|
0.5%
|
Salt Lake City,
UT
|
$532,411
|
27.9%
|
2.6%
|
7.2%
|
$1,584
|
0.5%
|
*Table ordered by market size
1 The Zillow Real Estate Market Reports are
monthly overviews 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 the
Zillow Real Estate Market Reports is 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 is
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 levels can be
accessed at www.zillow.com/research/data.
About Zillow Group
Zillow Group Inc. (NASDAQ: Z and ZG) is reimagining real estate
to make it easier to unlock life's next chapter.
As the most visited real estate website in the United States, Zillow® and its affiliates
offer customers an on-demand experience for selling, buying,
renting or financing with transparency and nearly seamless
end-to-end service. Zillow Offers® buys and sells homes directly in
dozens of markets across the country, allowing sellers control over
their timeline. Zillow Home Loans™, our affiliate lender, provides
our customers with an easy option to get pre-approved and secure
financing for their next home purchase. Zillow recently launched
Zillow Homes Inc., a licensed brokerage entity, to streamline
Zillow Offers transactions.
Zillow Group's brands, affiliates and subsidiaries include
Zillow®, Zillow Offers®, Zillow Premier Agent®, Zillow Home Loans™,
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SOURCE Zillow