Quicken Loans Study Shows Homeowners and Appraisers Don’t See Eye-to-Eye on Home Values

– Quicken Loans’ National HPPI shows appraised values 1.55% lower than homeowners estimated in July

– Home values rose 0.33% nationally in July, with a 4.21% year-over-year increase, according to the Quicken Loans HVI

Detroit, MI – Aug. 8, 2017 (PRNewswire) Homeowners across the country continue to view their property value higher than appraisers’ opinions. In July, the average spread between an owner’s estimate and the appraised value was 1.55 percent according to Quicken Loans’ National Home Price Perception Index (HPPI). Despite the national average, the range of perceptions varied across the country with valuations coming in higher than expected in some metro areas.

Quicken Loans Logo

Even with the varying opinions there has been a clear trend, with home values on the rise across the country. The Quicken Loans National Home Value Index (HVI) reported that appraised values increased an average of 0.33 percent from June to July. The growth is even stronger on a year-over-year basis, with home values rising 4.21 percent nationally from July 2016’s findings.

Chart

Home Price Perception Index (HPPI)
The HPPI shows appraisers’ opinions fell short of homeowners’ expectations by 1.55 percent, in July. This shows a narrowing gap, as homeowner estimates in June were 1.70 percent lower than appraised values. HPPI tracks differing trends across the country as real estate often fluctuates on a local basis. On average, appraisals were higher than owner expectations – the inverse of the national trend – in some of the fastest growing housing markets, including Dallas and Denver. However, some metro areas in the Northeast and the Midwest regions reported appraised values lower than owner estimates at a higher rate than the national trend.

“The home appraisal is one of the most important data points in the mortgage process. It determines the level of equity the homeowner has and, if the owner’s estimate is too far from how the appraiser views the property, it can cause the mortgage to be restructured,” said Bill Banfield, Quicken Loans Executive Vice President of Capital Markets. “Our hope is that this index is eye-opening for homeowners. Their home equity could be thousands of dollars higher, or lower, than they realize. If they are aware of the perceived trends in their area it could help them better prepare for their home purchase or refinance.”

Home Value Index (HVI)
The National HVI, based solely on appraisal data, reported home values rose an average of 0.33 percent in July. The positive momentum was even more substantial for the annual measure, showing a 4.21 percent increase year-over-year. All of the areas measured also reported annual home value growth – ranging from a 2.65 percent annual increase in the Northeast to a 5.64 percent annual rise in value in the West.

“The regional differences in home value growth mirror the perception difference across the country. Areas with slower growth were more likely to have owners overestimating their home value, and areas with much stronger growth had higher appraisals than owners realized they would be,” said Banfield. “With home values constantly changing, and the rates of change varying across the country, this is one more way to show how important it is for homeowners to stay aware of their local housing market.”

Chart

*A positive value represents appraiser opinions that are higher than homeowner perceptions. A negative value represents appraiser opinions that are lower than homeowner perceptions.

Chart

*A positive value represents appraiser opinions that are higher than homeowner perceptions. A negative value represents appraiser opinions that are lower than homeowner perceptions.

Chart

*A positive value represents appraiser opinions that are higher than homeowner perceptions. A negative value represents appraiser opinions that are lower than homeowner perceptions.

About the HPPI & HVI
The Quicken Loans HPPI represents the difference between appraisers’ and homeowners’ opinions of home values. The index compares the estimate that the homeowner supplies on a refinance mortgage application to the appraisal that is performed later in the mortgage process. This is an unprecedented report that gives a never-before-seen analysis of how homeowners are viewing the housing market. The HPPI national composite is determined by analyzing appraisal and homeowner estimates throughout the entire country, including data points from both inside and outside the metro areas specifically called out in the above report.

The Quicken Loans HVI is the only view of home value trends based solely on appraisal data from home purchases and mortgage refinances. This produces a wide data set and is focused on appraisals, one of the most important pieces of information to the mortgage process.

The HPPI and HVI are released on the second Tuesday of every month. Both of the reports are created with Quicken Loans’ propriety mortgage data from the 50-state lenders’ mortgage activity across all 3,000+ counties. The indexes are examined nationally, in four geographic regions and the HPPI is reported for 27 major metropolitan areas. All indexes, along with downloadable tables and graphs can be found at QuickenLoans.com/Indexes.

About Quicken Loans
Detroit-based Quicken Loans Inc. is the nation’s second largest retail home mortgage lender. The company closed more than $300 billion of mortgage volume across all 50 states between 2013 and 2016. Quicken Loans moved its headquarters to downtown Detroit in 2010, and now more than 17,000 team members from Quicken Loans and its Family of Companies work in the city’s urban core. The company generates loan production from web centers located in Detroit, Cleveland and Scottsdale, Arizona. The company also operates a centralized loan processing facility in Detroit, as well as its San Diego-based One Reverse Mortgage unit. Quicken Loans ranked “Highest in Customer Satisfaction for Primary Mortgage Origination” in the United States by J.D. Power for the past seven consecutive years, 2010 – 2017, and highest in customer satisfaction among all mortgage servicers the past four years, 2014 – 2017.

Quicken Loans was ranked #10 on FORTUNE magazine’s annual “100 Best Companies to Work For” list in 2017, and has been among the top-30 companies for the past 14 consecutive years. The company has been recognized as one of Computerworld magazine’s ‘100 Best Places to Work in IT’ the past 13 years, ranking #1 for eight of the past twelve years including 2017. The company is a wholly-owned subsidiary of Rock Holdings, Inc., the parent company of several FinTech and related businesses. Quicken Loans is also the flagship business of Dan Gilbert’s Family of Companies comprising nearly 100 affiliated businesses spanning multiple industries. For more information and company news visit QuickenLoans.com/press-room.

National Home Values Surpass Peak

– 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.

Zillow Logo

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.

Chart

About Zillow

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.

Zillow is a registered trademark of Zillow, Inc.

(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.

Homeowners with Adjustable-Rate Mortgages Increased Their Spending in Anticipation of Lower Mortgage Payments Despite a Drop in Home Values

New JPMorgan Chase Institute data evaluate impact of monetary policy on personal spending of US households with ARMs

Washington, D.C. – April 20, 2017 (BUSINESS WIRE) Today the JPMorgan Chase Institute released data showing that homeowners with adjustable rate mortgages (ARMs) significantly increased their spending both before and after anticipated mortgage payment decreases, despite a substantial drop in their home values. As a result of the Federal Reserve’s low interest rate policy, the mortgage rates of ARMs that reset between 2010 and 2012 dropped substantially, leading to lower mortgage payments for ARM borrowers. These homeowners increased their credit card spending by 9 percent in the year before the anticipated drop in their mortgage payments and by 15 percent in the year after reset, despite a 25 percent drop in their home values over the 5 years before reset.

JP Morgan Chase Institite Logo

Homeowners used the savings from lower ARM payments to make more purchases across all spending categories. Notably, spending on home improvements increased the most in both the pre-reset and post-reset periods, by 20 percent and 26 percent respectively. Homeowners increased their investment in their homes despite the fact that home values had dropped by 25 percent since origination.

The Consumer Spending Response to Mortgage Resets: Microdata on Monetary Policy report was constructed using de-identified data of 4,321 homeowners who had 30-year 5/1 ARMs that reset between April 2010 and December 2012 and a credit card through Chase. The report includes an analysis of changes in credit card spending and revolving balance in the two-year period surrounding ARM reset. Note that the median income of the sample was approximately $120,000, which is considerably higher than the Survey of Consumer Finances median before-tax family income for homeowners in the time period analyzed.

“These data underscore the impact of easy monetary policy on the spending of ARM borrowers despite declining home values, and highlight a segment of borrowers that should be carefully watched as rates begin to go back up,” said Diana Farrell, President and CEO, JPMorgan Chase Institute. “As housing policy reforms are deliberated, consideration should also be given to how those policies impact which type of mortgage borrowers choose and the influence those choices have on the ability of monetary policy to impact personal consumption.”

Following are the key findings from this new report.

  • Finding One: 44 percent of the homeowners in the sample experienced a large drop in their hybrid ARM payment at reset, which on average represented over 5 percent of their monthly income.
    • The 44 percent of homeowners in the sample that had a stable amortization schedule – one which was consistent before and after the mortgage rate reset – realized an average of $747 in monthly savings upon reset; these savings were equivalent to over 5 percent of their monthly income.
    • In the five years between origination and reset, the median home value for this group dropped by nearly $84,000 (25 percent), which pushed loan-to-value (LTV) ratios considerably higher.
  • Finding Two: Homeowners increased their spending by 9 percent in advance of the anticipated drop in their mortgage payments and by 15 percent after reset, despite the considerable drop in housing wealth.
    • Average credit card spending increased by 9 percent relative to baseline, or $289 per month, in the year preceding the ARM reset; in the year after reset, average spending increased by 15 percent relative to baseline, or $488 per month.
    • Homeowners increased their spending despite the fact that their home values had depreciated by nearly $84,000 (25 percent) since origination.
  • Finding Three: Homeowners used credit card borrowing to finance 21 percent of their pre-reset anticipatory spending increase, and post–reset they further increased their revolving balances. Over the full two year period, their total spending increases exceeded their mortgage-related savings by 4 percent.
    • Average credit card revolving balance increased by $741 over the 12 month pre-reset period, suggesting that these homeowners used their credit card to finance 21 percent of their pre-reset spending increase and funded the remaining 79 percent out of savings.
  • Finding Four: Homeowners used the savings from lower hybrid ARM payments to make more purchases across all spending categories, notably home improvements and healthcare.
    • Spending on home improvements increased the most in both the pre-reset and post-reset periods, by 20 percent and 26 percent respectively; homeowners increased their investment in their homes despite the 25 percent decline in their home values.

    • Spending on healthcare increased 16 percent relative to the baseline in the post-reset period, suggesting that homeowners may have postponed attending to their health until after they received a boost in income.

About the JPMorgan Chase Institute

The JPMorgan Chase Institute is a global think tank dedicated to delivering data-rich analyses and expert insights for the public good. Its aim is to help decision makers – policymakers, businesses, and nonprofit leaders – appreciate the scale, granularity, diversity, and interconnectedness of the global economic system and use better facts, timely data, and thoughtful analysis to make smarter decisions to advance global prosperity. Drawing on JPMorgan Chase & Co.’s unique proprietary data, expertise, and market access, the Institute develops analyses and insights on the inner workings of the global economy, frames critical problems, and convenes stakeholders and leading thinkers. For more information visit: jpmorganchaseinstitute.com.

Contacts

Media:

JPMorgan Chase & Co.
Nicole Kennedy
(215) 864-5732
nicole.kennedy@chase.com

Quicken Loans’ Measure of Home Value Perception Shows Appraisals Lagging Behind Owner Estimates

Quicken Loans’ National HPPI shows appraised values were 1.69% lower than homeowners estimated in February

Home values rise 0.55% nationally, with a 2.95% year-over-year increase, according to the Quicken Loans HVI

Detroit, MI – March 14th, 2017 (PRNewswire) Homeowners and appraisers are still not seeing eye-to-eye. Home appraisals were an average of 1.69 percent lower than what homeowners expected in February, according to the National Home Price Perception Index (HPPI). The current trend of appraisals falling lower than homeowner estimates started in February 2015, and the gap between the two values has now widened for the third consecutive month.

Quicken Loans Logo

Home appraisals rose in value by an average of 0.55 percent in February, as measured by the National Home Value Index (HVI). Additionally, appraisal values increased 2.95 percent year-over-year. The index rose in all regions measured.

Home Price Perception Index (HPPI)

Appraisal values continue to fall below homeowner estimates nationally, and in just less than half of the 27 metro areas examined. The National HPPI shows homeowners’ estimated values were an average of 1.69 percent higher than appraisers’ home value opinions in February. While this national average continues to show lower values than homeowner estimates, there are still metro areas showing appraiser opinions that are higher than what homeowners expected. Many of these are western cities with rapid home appreciation, including Denver, Portland, Seattle, San Francisco and Los Angeles.

“Quicken Loans is in a unique position, with access to two valuable data points. Homeowners tell us what they think their home is worth at the beginning of the mortgage process, then we compare that with the appraiser’s opinion of value,” said Quicken Loans Vice President of Capital Markets, Bill Banfield. “We hope consumers will take advantage of this information, seeing how their neighbors are perceiving their housing market, so they can better understand their own home’s value.”

Home Value Index (HVI)

The National HVI showed the country’s appraisal values rose an average of 0.55 percent from January to February. In addition to this modest increase, home values reached a level 2.95 percent higher than February 2016. This trend was reflected in regional values, with the West leading the way by posting a 4.45 percent year-over-year increase. The Midwest again trailed the rest of the country with an annual increase of just 0.47 percent.

“Low levels of home inventory persists as the main driver of home value growth,” said Banfield. “There are still plenty of interested buyers vying for a slim amount of homes for sale – pushing prices higher. Home values are likely to move higher in the Midwest as the spring buying season approaches, unless the number of homes available increases.”

Chart

*A positive value represents appraiser opinions that are higher than homeowner perceptions.
A negative value represents appraiser opinions that are lower than homeowner perceptions.

Chart

*A positive value represents appraiser opinions that are higher than homeowner perceptions.
A negative value represents appraiser opinions that are lower than homeowner perceptions.

Chart

*A positive value represents appraiser opinions that are higher than homeowner perceptions.
A negative value represents appraiser opinions that are lower than homeowner perceptions.

About the HPPI & HVI

The Quicken Loans HPPI represents the difference between appraisers’ and homeowners’ opinions of home values. The index compares the estimate that the homeowner supplies on a refinance mortgage application to the appraisal that is performed later in the mortgage process. This is an unprecedented report that gives a never-before-seen analysis of how homeowners are viewing the housing market. The HPPI national composite is determined by analyzing appraisal and homeowner estimates throughout the entire country, including data points from both inside and outside the metro areas specifically called out in the above report.

The Quicken Loans HVI is the only view of home value trends based solely on appraisal data from home purchases and mortgage refinances. This produces a wide data set and is focused on appraisals, one of the most important pieces of information to the mortgage process.

The HPPI and HVI are released on the second Tuesday of every month. Both of the reports are created with Quicken Loans’ propriety mortgage data from the 50-state lenders’ mortgage activity across all 3,000+ counties. The indexes are examined nationally, in four geographic regions and the HPPI is reported for 27 major metropolitan areas. All indexes, along with downloadable tables and graphs can be found at QuickenLoans.com/Indexes.

About Quicken Loans

Detroit-based Quicken Loans Inc. is the nation’s second largest retail home mortgage lender. The company has closed over $300 billion of mortgage volume across all 50 states between 2013 and 2016. Quicken Loans generates loan production from web centers located in Detroit, Cleveland and Scottsdale, Arizona. The company also operates a centralized loan processing facility in Detroit, as well as its San Diego-based One Reverse Mortgage unit. Quicken Loans ranked “Highest in Customer Satisfaction for Primary Mortgage Origination” in the United States by J.D. Power for the past seven consecutive years, 2010 – 2016, and highest in customer satisfaction among all mortgage servicers the past three years, 2014 – 2016.

Quicken Loans was ranked #10 on FORTUNE magazine’s annual “100 Best Companies to Work For” list in 2017, and has been among the top-30 companies for the last 14 years. It has been recognized as one of Computerworld magazine’s ‘100 Best Places to Work in IT’ the past 12 years, ranking #1 for seven of the past eleven years including 2016. The company moved its headquarters to downtown Detroit in 2010, and now more than 12,000 of its 16,000 team members work in the city’s urban core. For more information about Quicken Loans, please visit QuickenLoans.com.

Home Values Rise 7 Percent in 2016

– The median home value in the U.S. is now $193,800, according to Zillow’s December Real Estate Market Reports. Rents grew 1.5 percent annually to a $1,403 median monthly payment.

– Home values rose 6.8 percent over the past year to a Zillow Home Value Index (ZHVI) of $193,800 in December.

– Rents rose 1.5 percent over the past year to a Zillow Rent Index (ZRI) of $1,403 per month.

– Portland and Seattle each ranked in the top three for the fastest appreciating rents and home values.

Seattle, WA – Jan. 19, 2017 (PRNewswire) Home values rose 6.8 percent from last December, the fastest annual pace of the year. The Zillow® Home Value Index(i) (ZHVI) is $193,800, just below the highest value set in April 2007, according to the December Zillow Real Estate Market Reports(ii).

Zillow Logo

Home value appreciation slowed slightly in Portland, but remains the fastest in the nation, up 13.8 percent from last December. Tampa, Seattle and Dallas saw similarly high home value growth, with home values growing nearly 12 percent from a year ago.

Hot home values characterized 2016 all the way to the end – and they show no sign of slowing in 2017. However, as the new year begins, flattening rents could take the heat off buyers who are struggling to find a home amid low inventory and give them more time to search for the right home.

“Home values ended 2016 growing at their fastest pace of the year, which could be an indication of what to expect in 2017,” said Zillow Chief Economist Dr. Svenja Gudell. “Lack of inventory will remain a major concern for home buyers this year. Especially lack of available entry-level homes coupled with high demand will continue to rapidly drive up home values in the near future. Buyers should make sure they get pre-approved for a mortgage, and be prepared to move quickly, especially in hot markets like Seattle and Portland. It’s not uncommon for buyers to make at least two offers during their home search.”

Rent appreciation stabilized at 1.5 percent annual growth, less than half the pace rents were growing at last year. The median monthly rent payment in the U.S. is $1,403.

The fastest rent appreciation occurred along the West Coast. Seattle led the nation in rising rents, with rents growing 8.4 percent in December, followed by Portland and Sacramento.

Inventory is still a concern for home buyers across the country; finding an affordable home is the top concern for people searching for homes(iii). There are 4.6 percent fewer available homes than there were a year ago. Among the nation’s largest markets, Boston and Minneapolis saw the biggest declines in inventory over the past year.

Chart

Zillow

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. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ: Z and ZG), and headquartered in Seattle.

Zillow and Zestimate are registered trademarks of Zillow, Inc.

(i) 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.

(ii) 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. 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.

(iii) This survey was conducted from Nov. 30, 2015 through Dec 2, 2015 of 1,010 adults by ORC International on behalf of Zillow, Inc.

(iv) 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.

Home Values Rise at Fastest Pace Since 2006

The median home value in the U.S. is now $192,500, according to Zillow’s November Real Estate Market Report, just 2 percent shy of 2007 peak.

– Home values rose 6.5 percent over the past year to a Zillow Home Value Index (ZHVI) of $192,500 in November.

– Home values appreciated at their fastest annual pace since August 2006, near the peak of the housing bubble.

– Rents rose 1.5 percent over the past year to a Zillow Rent Index (ZRI) of $1,403 per month.

Seattle, WA – Dec. 22, 2016 (PRNewswire) In November, national home values rose at their fastest annual pace since 2006, near the peak of the housing bubble. The Zillow® Home Value Index(i) (ZHVI) is $192,500, 2 percent shy of the records set in 2007, according to the November Zillow Real Estate Market Reports(ii).

Zillow Logo

Rents, which were the big story of 2016 as they rose at a record pace, have slowed considerably to a 1.5 percent annual appreciation rate; this rate is expected to continue into 2017. The median monthly rent payment in the U.S. is now $1,403.

Home values were 6.5 percent higher this November than last. Strong growth is especially evident in a handful of new powerhouse markets, including Seattle, Denver, Portland and Dallas, whose strong job markets attracted new home buyers over the last year.

At their fastest pace, home values across the country were appreciating about 11 percent year-over-year. When the bubble burst, home values plummeted, falling 7.4 percent year-over-year during the depths of the crisis, and then began a steady recovery in 2012.

“Home value growth continues to be strong, supported by solid buyer demand and still limited for-sale inventory in many markets across the country,” said Zillow Chief Economist Dr. Svenja Gudell. “Conditions today are very different than the ones we saw back in 2006, which was the last time we saw home values rising this fast. Rampant real estate speculation and loose mortgage credit have been replaced by the sound economic fundamentals we are seeing now.”

Portland, Seattle and Dallas reported the highest year-over-year home value appreciation among the 35 largest U.S. metros. Portland home values rose 14 percent to a median value of $351,800. Both Seattle and Dallas home values rose 12 percent since last November.

Seattle reported the fastest rent appreciation of the 35 largest U.S. metros for the sixth month in a row, up almost 9 percent annually. Portland and Sacramento follow Seattle, with rents up about 7 percent.

Inventory still remains an issue for home buyers across the country. There are 6 percent fewer homes to choose from than a year ago, with Boston, Indianapolis and Kansas City reporting the greatest drop. In Boston, there are 26 percent fewer homes to choose from than a year ago, and 21 percent fewer in Indianapolis and Kansas City.

chart

Zillow

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. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ: Z and ZG), and headquartered in Seattle.

Zillow and Zestimate are registered trademarks of Zillow, Inc.

(i) 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.

(ii) 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.