– The median home value across the country is now $198,000, 1 percent higher than peak value hit in April 2007, according to the April Zillow® Real Estate Market Reports
– National home values have returned to peak value for the first time in over a decade.
– U.S. home values rose 7.3 percent over the past year to a Zillow Home Value Index (ZHVI) of $198,000. During the housing boom, home values hit a peak of $196,600.
– Rents rose 0.7 percent over the past year to a Zillow Rent Index (ZRI) of $1,412 per month. Rents in Seattle and Sacramento, Calif. are rising the most.
– There are almost 8 percent fewer homes on the market this year than last, with Minneapolis, Columbus, Ohio and Seattle reporting the greatest drop in inventory.
– Mortgage rates on Zillow ended April at 3.83 percent, down from a high of 3.88 percent in the first few weeks of the month.
Seattle, WA – May 25, 2017 (PRNewswire) National home values have surpassed the peak hit during the housing bubble and are at their highest value in more than a decade, according to the April Zillow® Real Estate Market Reports(i). The median home value in the U.S. is now $198,000, 1 percent higher than peak value hit in 2007.
Home values across the country rose 7.3 percent since last April, the strongest rate of appreciation in more than 10 years. Seattle, Dallas and Tampa reported the greatest home value growth over the past year. Home values in Seattle rose almost 12 percent, to a median home value of $432,300. Dallas and Tampa home values rose 11 percent year-over-year.
When the housing market crashed a decade ago, home values plummeted and it has taken about 10 years for median home values to reach prior peaks. However, some markets’ median home values recovered more quickly than others. Among the 32 largest U.S. metros, 10 markets saw their median home value exceed prior bubble peaks more than a year ago, while 17 have yet to regain peak value.
“Now that the typical U.S. home is worth more than ever, people may be tempted to ask if we’re in another national housing bubble,” said Zillow Chief Economist Dr. Svenja Gudell. “We aren’t in a bubble, and won’t be entering one anytime soon. There are big differences between the market then and the market now: Then, loose credit, speculation and overbuilding were ingredients in a recipe for disaster. Now, healthy home buyer demand is being driven largely by a stable economy and demographic tailwinds, which is exactly what we would expect in a healthy market. Supply has been slow to catch up to this demand, which is causing home values to grow at a faster clip than we might otherwise expect. Beyond that, the market’s fundamentals look largely healthy. Homes are largely more affordable in most markets today than they were prior to the bust, and will remain so for the foreseeable future, even if mortgage rates rise. Americans clearly continue to see the value in homeownership, especially young Americans, which bodes well for the future.”
Median rent across the nation rose 0.7 percent since last April, to a median payment of $1,412 per month. Seattle, Sacramento, Calif. and Los Angeles reporting the greatest year-over-year rent appreciation among the 35 largest U.S. metros. Rents in Seattle are up 6 percent to a Zillow Rent Index(ii) (ZRI) of $2,114. Rents in Sacramento are up almost 5 percent, while Los Angeles rents are up 4 percent.
One of the greatest hurdles for home shoppers this summer will be low inventory. There are 8 percent fewer homes on the market than a year ago, with Minneapolis, Columbus, Ohio and Seattle reporting the greatest drop. There are 27 percent fewer homes on the market than a year ago in Minneapolis and Columbus, and 20 percent fewer in Seattle.
In April, mortgage rates(iii) on Zillow ended at 3.83 percent, the lowest month-ending rate since October 2016. Mortgage rates in April hit a high of 3.88 percent in the first few weeks of the month(iv), with the month low at 3.74 percent(v). Zillow’s real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgages site and reflect the most recent changes in the market.
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. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ: Z and ZG), and headquartered in Seattle.
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(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 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.
(iii) Rates for a 30-year fixed mortgage.
(iv) Month highs occurred on April 3rd, 5th and 10th.
(v) Month low occurred on April 18th.
(vi) 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.