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Daily Archives: February 20, 2020
Home Value Growth Expected to Re-Accelerate Just in Time For Home Shopping Season
– Annual U.S. home value growth has slowed in each month since April 2018
– The typical home in the U.S. is worth $245,193, up 3.8% from a year ago.
– There were 1,500,262 homes listed for sale in January, down 8% from a year ago.
– Typical U.S. rent grew 2.3% to $1,602.
Seattle, WA – Feb. 20, 2020 (PRNewswire) Annual U.S. home value growth slowed for the 21st consecutive month in January, but you have to squint to spot the difference this time around. When paired with inventory that is hovering near record lows, the nearly two-year slowdown in the housing market may be coming to an end right as home shopping season kicks off.
U.S. home values grew 3.8% year-over-year to $245,193, less than one-hundredth of a percentage point slower than the previous month, according to the January Zillow® Real Estate Market Report. Annual home value appreciation has slowed in each month since April 2018, but this is the smallest drop from one month to the next during that period.
And while the number of homes listed for sale increased from record lows a month earlier, inventory is down 8% annually — the biggest annual drop since March 2018. There were 1,500,262 homes on the market in January, up 4,295 from the previous month but down 130,310 year-over-year.
This persistently low inventory is a key reason why home value growth is expected to speed up once again. The economy has remained strong, mortgage rates are low and buyers will be competing for a limited number of homes this home shopping season.
“As the economic storm clouds on the horizon in early 2019 cleared up, we saw buyers return in droves, taking advantage of ultra-low mortgage rates,” said Zillow economist Jeff Tucker. “Our first look at 2020 data suggests that we could see the most competitive home shopping season in years, as buyers are already competing over near-record-low numbers of homes for sale. That is likely to mean more multiple-offer situations, and that buyers will have a harder time finding the perfect fit for their families. The good news for buyers is that low mortgage rates are helping to make home ownership more affordable, and home builders are responding to the hot housing market by starting construction on more homes than at any time since 2007.”
Home values are growing faster than they were a month ago in about half of large markets (17 of the top 35). The hottest large markets are Phoenix (up 6.7%), Columbus (6.2%), Charlotte (5.4%) and Cincinnati (5%). Home values fell year-over-year in San Jose for the 12th consecutive month. But its Bay Area neighbor, San Francisco, saw home values grow 1% year-over-year, breaking a streak of declines that dated back to May 2019.
Inventory fell in all but three top-35 metros — San Antonio (+7.7%), Detroit (+6.4%) and Chicago (+0.3%). Inventory was hit the hardest in Seattle (-27.6%), Phoenix (-24.5%) and San Diego (-23.1%).
Rent growth remained stable. The typical rent is now $1,602, up 2.3% year over year and just $1 more than last month. Rents are growing faster than a year ago in 28 of the 35 largest U.S. metros, led by Phoenix (+7.9% annually) — also the fastest-growing for-sale market — Pittsburgh (+7%), Cincinnati (+5.7%) and Las Vegas (+5.7%).
Mortgage rates listed by third-party lenders on Zillow rose to a peak of 3.77% on January 31 after starting the month at 3.70%. Rates reached their monthly low on January 24 at 3.51%. Zillow’s real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgages site by third-party lenders and reflect recent changes in the market.
| Metropolitan Area | Zillow Home Value Index, January 2020 | ZHVI Year- over-Year Change | Zillow Rent Index, January 2020 | ZRI Year- over-Year Change | Inventory Year-over-Year Change |
| United States | $245,193 | 3.8% | $1,602 | 2.3% | -8.0% |
| New York, NY | $481,486 | 0.8% | $2,297 | 1.7% | -3.6% |
| Los Angeles-Long Beach-Anaheim, CA | $674,786 | 2.3% | $2,625 | 1.8% | -18.5% |
| Chicago, IL | $238,978 | 1.0% | $1,590 | 1.2% | 0.3% |
| Dallas-Fort Worth, TX | $253,299 | 2.2% | $1,465 | 2.2% | -5.0% |
| Philadelphia, PA | $248,836 | 3.1% | $1,518 | 3.2% | -13.3% |
| Houston, TX | $217,159 | 2.4% | $1,402 | 0.9% | -4.6% |
| Washington, DC | $434,156 | 3.1% | $1,979 | 2.3% | -11.0% |
| Miami-Fort Lauderdale, FL | $299,657 | 1.8% | $1,853 | 0.8% | -7.9% |
| Atlanta, GA | $239,115 | 4.8% | $1,482 | 4.7% | -0.5% |
| Boston, MA | $490,327 | 1.9% | $2,350 | 2.9% | -12.6% |
| San Francisco, CA | $1,094,095 | 1.0% | $3,121 | 0.5% | -15.4% |
| Detroit, MI | $179,078 | 3.6% | $1,208 | 1.6% | 6.4% |
| Riverside, CA | $382,754 | 3.1% | $1,942 | 3.2% | -16.2% |
| Phoenix, AZ | $288,708 | 6.7% | $1,457 | 7.9% | -24.5% |
| Seattle, WA | $531,353 | 3.1% | $2,026 | 2.4% | -27.6% |
| Minneapolis-St Paul, MN | $292,183 | 3.9% | $1,531 | 3.4% | -3.3% |
| San Diego, CA | $606,086 | 3.7% | $2,559 | 4.2% | -23.1% |
| St. Louis, MO | $179,019 | 3.2% | $1,042 | 5.0% | -8.5% |
| Tampa, FL | $229,468 | 3.9% | $1,450 | 5.1% | -14.9% |
| Baltimore, MD | $291,130 | 1.2% | $1,613 | 0.9% | -10.4% |
| Denver, CO | $437,537 | 2.3% | $1,800 | 2.8% | -13.9% |
| Pittsburgh, PA | $157,983 | 4.5% | $1,175 | 7.0% | -11.1% |
| Portland, OR | $418,051 | 1.9% | $1,689 | 2.7% | -16.2% |
| Charlotte, NC | $237,051 | 5.4% | $1,362 | 5.3% | -9.7% |
| Sacramento, CA | $427,699 | 4.0% | $1,827 | 4.5% | -18.9% |
| San Antonio, TX | $203,705 | 4.0% | $1,229 | 1.3% | 7.7% |
| Orlando, FL | $256,306 | 3.7% | $1,456 | 4.4% | -11.8% |
| Cincinnati, OH | $185,009 | 5.0% | $1,206 | 5.7% | -15.4% |
| Cleveland, OH | $158,559 | 4.5% | $1,066 | 1.8% | -8.0% |
| Kansas City, MO | $203,873 | 3.5% | $1,138 | 3.3% | -12.0% |
| Las Vegas, NV | $290,420 | 1.2% | $1,357 | 5.7% | -11.7% |
| Columbus, OH | $210,615 | 6.2% | $1,188 | -0.2% | -7.0% |
| Indianapolis, IN | $179,994 | 4.7% | $1,103 | 2.8% | N/A |
| San Jose, CA | $1,194,002 | -2.9% | $3,296 | 0.3% | -18.6% |
| Austin, TX | $337,558 | 4.0% | $1,632 | 4.8% | -14.1% |
About Zillow
Zillow® is transforming how people buy, sell, rent and finance homes by creating seamless real estate transactions for today’s on-demand consumer. Zillow is the leading real estate and rental marketplace and a trusted source for data, inspiration and knowledge among both consumers and real estate professionals.
Zillow’s proprietary data, technology and industry partnerships put Zillow at nearly every major point of the home shopping experience, helping consumers search for and get into their new home faster. Zillow now offers a fully integrated home shopping experience that includes access to for sale and rental listings, Zillow Offers®, which provides a new, hassle-free way to buy and sell eligible homes directly through Zillow; and Zillow Home Loans, Zillow’s affiliated lender that provides an easy way to receive mortgage pre-approvals and financing. Zillow Premier Agent instantly connects buyers and sellers with its network of real estate professionals to help guide them through the home shopping process. For renters, Zillow’s innovations are streamlining the way people search, tour, apply and pay rent for leased properties.
In addition to Zillow.com, Zillow operates the most popular suite of mobile real estate apps, with more than two dozen apps across all major platforms. Launched in 2006, Zillow is owned and operated by Zillow Group, Inc. (NASDAQ:Z and ZG) and headquartered in Seattle.
Zillow and Zillow Offers are registered trademarks of Zillow, Inc.
NAR Announces New Cyber Liability Insurance Program for Realtors®
Chicago, IL – February 20, 2020) (nar.realtor) The National Association of Realtors® this morning announced a partnership with CyberPolicy® to deliver a new cyber liability insurance program designed to meet the unique needs of real estate professionals. As NAR continues to combat the escalating threat of fraud in the real estate industry by offering educational and preventative resources to members, the partnership will help Realtor®-owned brokerages efficiently compare, quote and purchase quality cyber insurance plans from a select group of carriers who understand the unique needs of real estate professionals and offer exclusive NAR member benefits.
“Cyber security threats are fast-growing in the U.S.,” said NAR CEO Bob Goldberg. “And while some progress has been made to increase awareness and prevention efforts, it’s clear that there is more our members must understand to avoid these situations and to be prepared if an attack occurs. CyberPolicy will provide access to a key piece of that puzzle through a specialized program created specifically for our members.”
Determining which type of insurance is needed to protect businesses in the event of an online attack has also proven difficult for brokers and professionals across other industries.
“The real estate industry remains highly vulnerable to cybercrime, but determining what type of protection and insurance you need to best defend your business in the event of an attack can be a challenge,” said Keith Moore, CEO and Founder of CyberPolicy. “We’re thrilled to partner with NAR to offer a tailor-made solution for Realtors® that provides the cyber liability insurance needed to meet their needs.”
According to FBI data, about 11,300 people were victims of wire fraud in the real estate and rental sector in 2018, totaling more than $150 million in losses nationwide. The FBI expects more than six trillion dollars in cybercrimes to be committed globally by 2021. Every weekday in the United States, five thousand phishing emails are sent out from more than 115 countries around the world.
Through this partnership, CyberPolicy will begin delivering customized plan options to help Realtors® quickly restore operations after a cyberattack or fraud occurs, as insurers work with them to recoup losses and legal costs, recover stolen data and preserve professional reputations.
While NAR encourages brokers to continue educating agents about ways to reduce risk and exposure, the nation’s largest trade association contends that cyber liability insurance offers another critical layer of protection. Visit nar.realtor/cyberpolicy to learn more about this program, available exclusively through NAR’s REALTOR Benefits® Program.
The National Association of Realtors® is America’s largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.