SEATTLE, Jan. 22, 2021 /PRNewswire/ -- Home value
growth continued its meteoric rise in December as towering demand
for homes carried on into winter, according to Zillow's®
latest Real Estate Market Report1. Houses are going
under contact quickly and sales far outpace the year prior as
all-time low mortgage rates help keep monthly payments manageable,
despite rising prices.
Typical home values in the U.S. climbed to $266,104, up 8.4% from a year ago -- the highest
annual increase since January 2014.
Home value growth over the last quarter in the U.S. was 3.2% --
higher than at any time since the Zillow Home Value Index (ZHVI)
series began in 1996. Many metros took part in this late surge in
appreciation as the nation's housing market rode a wave of high
demand deep into the winter. The Sun Belt produced growth standouts
including Austin -- the metro
predicted to be hottest in 2021 -- which saw 5.3% growth over
the previous quarter, while Phoenix, San
Diego, and Salt Lake City
all clocked 5.1% growth.
"The housing market ended 2020 with an exclamation point, as
home values rose sharply near the end of the year at their fastest
quarterly rate on record," said Jeff
Tucker, senior economist at Zillow. "Sales are taking place
at a rapid clip as momentum gathering in the market since June is
still pushing forward at full force and is expected to continue for
the foreseeable future. Although prices are skyrocketing,
record-low mortgage rates keep bringing buyers to the table by
keeping monthly payments in reach."
Phoenix led all major metros in
yearly home value growth, up 15.3% compared to last December. It
snatched the lead away from San
Jose -- up 15.2% year over year -- and stayed ahead of
Salt Lake City (13.2%),
Seattle (13%) and Austin (12.9%).
Monthly home value growth for the U.S. held steady at 1.1%, as
it was in November. This is the fastest month-over-month growth in
the series history reaching back to 1996. Monthly growth ranged
from 0.6% in Las Vegas to 1.8% in
Salt Lake City.
Rents nationwide are up 0.2% since November to $1,740, continuing a slow recovery from a yearly
low in October of $1,728. Annual rent
growth was stunted in 2020, rising just 0.8% -- equivalent to
$14 -- year over year. In December of
2019 rents were climbing at 3.5% annually.
Downward slides in rent reversed course late in 2020 in markets
like Washington, DC - up 0.2%
month over month in December, Boston (0.4%), Los
Angeles (0.2%), Chicago
(0.2%), and San Jose (0.6%). The
rent recovery is broad-based, with positive monthly changes across
the U.S. as a whole and in 77 of the largest 100 MSAs for which
rent has been measured. In San Francisco (-0.6%),
Seattle (-0.8%), and New York (-0.4%), the bottom is still to come,
but monthly rent decreases are gradually slowing.
For-sale listings' median time on market for the U.S. stayed
extremely short at 14 days, just one day longer than monthly lows
in the fall. Newly pending sales are following seasonal trends, but
remain elevated -- up 21.7% compared to last year despite available
inventory down 26.6%.
Mortgage rates listed by third-party lenders on Zillow reached
an all-time low of 2.63% on Dec. 18.
Rates entered December at an extraordinarily low 2.71%, hit a
monthly high of 2.79% on Dec. 25 and
ended the month at 2.75%. Even as prices rose late in 2020, record
low mortgage rates have made monthly payments more affordable for
buyers. Rates are currently on an upward trend, but are still far
below long-term averages.
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 market2.
Metropolitan
Area*
|
Zillow Home
Value Index
(ZHVI),
December
2020
|
ZHVI - YoY
Change,
December
2020
|
Newly Pending
Listings - YoY
Change,
December
2020
|
Zillow
Observed Rent
Index (ZORI),
December
2020
|
ZORI - YoY
Change,
December
2020
|
United
States
|
$266,104
|
8.4%
|
21.7%
|
$1,740
|
0.8%
|
New York,
NY
|
$512,941
|
7.0%
|
49.2%
|
$2,469
|
-8.7%
|
Los Angeles-Long
Beach-Anaheim, CA
|
$739,930
|
9.3%
|
20.9%
|
$2,589
|
-0.2%
|
Chicago,
IL
|
$258,381
|
6.3%
|
30.8%
|
$1,608
|
-2.1%
|
Dallas-Fort Worth,
TX
|
$270,757
|
7.5%
|
23.5%
|
$1,612
|
2.7%
|
Philadelphia,
PA
|
$275,148
|
9.7%
|
75.0%
|
$1,589
|
2.5%
|
Houston,
TX
|
$228,789
|
6.0%
|
29.3%
|
$1,521
|
1.2%
|
Washington,
DC
|
$471,888
|
7.8%
|
84.9%
|
$2,022
|
-2.3%
|
Miami-Fort
Lauderdale, FL
|
$319,594
|
7.0%
|
24.4%
|
$1,901
|
2.0%
|
Atlanta,
GA
|
$261,664
|
8.9%
|
15.1%
|
$1,606
|
5.8%
|
Boston, MA
|
$535,997
|
9.1%
|
18.6%
|
$2,230
|
-5.9%
|
San Francisco,
CA
|
$1,167,602
|
5.9%
|
56.2%
|
$2,924
|
-8.1%
|
Detroit,
MI
|
$197,049
|
9.8%
|
32.0%
|
$1,325
|
6.0%
|
Riverside,
CA
|
$427,863
|
10.3%
|
17.6%
|
$2,218
|
9.4%
|
Phoenix,
AZ
|
$328,359
|
15.3%
|
25.5%
|
$1,587
|
8.4%
|
Seattle,
WA
|
$586,162
|
13.0%
|
17.1%
|
$1,896
|
-3.9%
|
Minneapolis-St Paul,
MN
|
$316,151
|
7.9%
|
20.6%
|
$1,538
|
1.1%
|
San Diego,
CA
|
$678,665
|
12.5%
|
|
$2,375
|
4.3%
|
St. Louis,
MO
|
$195,380
|
8.4%
|
26.5%
|
$1,113
|
4.2%
|
Tampa, FL
|
$253,596
|
11.4%
|
|
$1,573
|
6.8%
|
Baltimore,
MD
|
$316,857
|
7.6%
|
37.8%
|
$1,660
|
2.8%
|
Denver, CO
|
$481,402
|
8.3%
|
11.7%
|
$1,756
|
0.6%
|
Pittsburgh,
PA
|
$175,882
|
9.2%
|
13.2%
|
$1,166
|
2.3%
|
Portland,
OR
|
$453,127
|
9.2%
|
26.8%
|
$1,670
|
1.7%
|
Charlotte,
NC
|
$260,976
|
9.7%
|
-1.4%
|
$1,516
|
4.1%
|
Sacramento,
CA
|
$475,045
|
10.8%
|
21.6%
|
$1,942
|
6.9%
|
San Antonio,
TX
|
$219,862
|
6.0%
|
41.4%
|
$1,345
|
2.4%
|
Orlando,
FL
|
$273,214
|
7.2%
|
|
$1,604
|
2.1%
|
Cincinnati,
OH
|
$205,977
|
11.3%
|
17.8%
|
$1,289
|
5.8%
|
Cleveland,
OH
|
$173,637
|
10.8%
|
32.4%
|
$1,159
|
4.6%
|
Kansas City,
MO
|
$224,826
|
10.0%
|
18.7%
|
$1,203
|
5.0%
|
Las Vegas,
NV
|
$313,532
|
7.6%
|
13.2%
|
$1,508
|
6.8%
|
Columbus,
OH
|
$231,028
|
10.3%
|
13.3%
|
|
|
Indianapolis,
IN
|
$202,370
|
10.6%
|
18.9%
|
$1,271
|
7.0%
|
San Jose,
CA
|
$1,287,714
|
15.2%
|
-11.1%
|
$2,970
|
-6.2%
|
Austin, TX
|
$378,454
|
12.9%
|
12.1%
|
$1,548
|
-0.9%
|
Virginia Beach,
VA
|
$261,539
|
7.8%
|
|
$1,385
|
5.9%
|
Nashville,
TN
|
$300,531
|
8.3%
|
|
|
|
Providence,
RI
|
$353,514
|
10.6%
|
-11.5%
|
$1,587
|
9.8%
|
Milwaukee,
WI
|
$217,160
|
11.2%
|
|
$1,121
|
2.3%
|
Jacksonville,
FL
|
$248,835
|
8.2%
|
29.4%
|
$1,380
|
5.8%
|
Memphis,
TN
|
$171,488
|
10.6%
|
16.0%
|
$1,318
|
9.7%
|
Oklahoma City,
OK
|
$168,880
|
7.4%
|
24.6%
|
$1,115
|
4.2%
|
Louisville-Jefferson
County, KY
|
$196,330
|
8.6%
|
8.5%
|
$1,028
|
4.8%
|
Hartford,
CT
|
$258,544
|
8.6%
|
39.8%
|
$1,354
|
5.2%
|
Richmond,
VA
|
$266,172
|
7.3%
|
|
$1,312
|
5.3%
|
New Orleans,
LA
|
$221,704
|
7.5%
|
23.7%
|
$1,331
|
3.3%
|
Buffalo,
NY
|
$192,742
|
10.9%
|
8.9%
|
$1,112
|
5.6%
|
Raleigh,
NC
|
$303,677
|
7.2%
|
7.6%
|
$1,522
|
2.8%
|
Birmingham,
AL
|
$186,523
|
9.3%
|
46.0%
|
$1,110
|
6.0%
|
Salt Lake City,
UT
|
$428,280
|
13.2%
|
|
$1,427
|
3.9%
|
*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.
Methodologies and 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:
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 U.S., 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 affiliates and subsidiaries include Zillow®,
Zillow Offers®, Zillow Premier Agent®, Zillow Home Loans™, Zillow
Closing Services™, Zillow Homes, Inc., Trulia®, Out East®,
StreetEasy® and HotPads®. Zillow Home Loans, LLC is an Equal
Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org).
View original
content:http://www.prnewswire.com/news-releases/home-values-break-new-growth-records-as-demand-surge-presses-on-301213006.html
SOURCE Zillow