Home-Value Growth Slowing in Nation’s Hottest Housing Markets

– Seattle was leading the nation in home-value growth a year ago, but is now the 12th fastest-appreciating housing market and reported the greatest slowdown over the past year

– Annual home-value growth is slowing in 20 of the 35 largest U.S. housing markets, with Seattle and Tampa, Fla., reporting the greatest slowdown.

– U.S. home values rose 8 percent over the past year to a median of $218,000.

– The rental market is also showing signs of a slowdown. Median rent across the U.S. rose 0.5 percent since last July to $1,440, down from 1.6 percent growth a year ago.

– The number of homes for sale has been declining annually across the country for 42 straight months, with Columbus and Atlanta reporting the greatest drop in inventory over the past year.

Seattle, WA – Aug. 23, 2018 (PRNewswire) Home-value growth is slowing in almost two-thirds of the nation’s largest housing markets, according to the July Zillow® Real Estate Market Report(i). Seattle, Tampa, Sacramento, Calif., and Portland reported the greatest slowdown in home value appreciation over the past year.

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Seattle, which led the nation in home-value growth a year ago(ii), is now the 12th fastest-appreciating housing market and reported the greatest slowdown over the past year. At this time last year, home values in Seattle were appreciating at more than 14 percent annually, but have now slowed to a 9 percent appreciation rate.

Home values across the U.S. rose 8 percent in the past year, 0.7 percentage points faster than the year before. While national home value growth hasn’t slowed yet, Zillow forecasts the annual appreciation rate to drop to 6.8 percent over the next 12 months. The median home value in the U.S. is $218,000, the highest value ever reported.

While home-value growth is slowing in the majority of the largest markets, the current annual appreciation rate is still higher than historical norms(iii) in all but four of the markets analyzed. In Tampa, where home-value growth has slowed significantly over the past year, home values rose over 10.5 percent in the past year, while the historic average rate of appreciation is just over 5 percent. The historic average annual rate of appreciation in the U.S. is 3.7 percent.

“The nation’s pricier markets are starting to feel an affordability squeeze as buyers begin to balk at the sustained, rapid rise in prices that have followed the strong job growth and high housing demand of the past half-decade,” said Zillow senior economist Aaron Terrazas. “But despite the slowdown, home values are still growing faster than their historic pace in almost all large markets, and it’s far too soon to call it a buyer’s market. And in many of the nation’s more affordable areas, aside from the pricey and exclusive San Francisco Bay Area, home value growth has perked up as buyers continue to seek good value for their money. But it’s clear that the winds that have boosted sellers over the past few years are ever-so-slightly starting to shift.”

The rental market is also showing signs of a slowdown. Median rent across the U.S. rose 0.5 percent over the past year to $1,440, down from 1.6 percent growth a year ago. Among the 35 largest housing markets, 21 reported slower rent appreciation in July compared to a year ago, with Seattle, Portland and Kansas City leading the slowdown.

Rental prices rose the most over the past year in Riverside, Calif., Sacramento and Las Vegas. Median rent in Riverside rose 4.6 percent since last July to $1,898. Median rent in Sacramento and Las Vegas rose 4.4 percent and 3.2 percent, respectively.

The number of homes for sale has been declining annually across the country for 42 straight months, although the pace of the decline is slowing. Home shoppers will have about 4 percent fewer homes on the market to choose from than a year ago – the smallest annual decline in 17 months. Columbus, Ohio, Atlanta and Pittsburgh reported the greatest drop in inventory over the past year. In Columbus and Atlanta, home shoppers will have about 14 percent fewer homes to choose from than a year ago, and about 13 percent fewer to choose from in Pittsburgh.

July ended with mortgage rates on Zillow(iv) at 4.40 percent, after starting the month at 4.35 percent. July mortgage rates peaked on the second to last day of the month at 4.42 percent, and hit a month low in the middle of the month(v) when rates were at 4.30 percent. 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.

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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 great real estate professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow Group’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, Inc. (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) Seattle metro last led the nation in home value appreciation in June 2017, when home values there were appreciating 14.8 percent year-over-year.

(iii) Historical norms is referring to the average rate of appreciation.

(iv) Mortgage rates for a 30-year fixed mortgage.

(v) Month low was hit on July 18th.

Move Over California — Midland, Texas is the Hottest Market in America

Only four California markets made May 2018 list, the lowest since the inception of the index

Santa Clara, CA – June 7, 2018 (PRNewswire) New data from realtor.com®, The Home of Home Search℠, reveals Midland, Texas was the nation’s hottest housing market for the second month in a row. Only four California markets appeared on the monthly list of the nation’s 20 hottest markets in sharp contrast of two months ago when more than half of the hottest housing markets were in California.

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May hotness was well distributed with 9 other states represented in the top 20 list: Texas, Massachusetts, Ohio, Idaho, New York, Michigan, Colorado, Indiana, Washington and Wisconsin. In fact, only two months ago the list was dominated by California markets when the top 10 included: San Francisco; Vallejo, Calif.; San Jose, Calif; Santa Cruz, Calif.; Sacramento, Calif.; and Stockton, Calif. Several of these markets made the list of top areas Californians are looking to leave, released last week.

“The California housing market has been hot for a long time – but may be too hot. Our May hotness index further confirms we’re seeing that as prices in California continue to soar, people are increasingly looking elsewhere,” said Javier Vivas, director of economic research for realtor.com®. “As we continue into what we expect to be the hottest home-buying season in history, look for a wide variety of locales to remain red-hot.”

Spill-over of demand for more affordable markets is also as evident as ever in the list, with seven Midwest metros in the top 20, the highest since we started tracking. Markets that saw the largest jump in hotness last month were Fort Wayne, Ind. and Grand Rapids-Wyoming, Mich., which moved up 20 and 16 spots, respectively, since April likely due to their cold climate delaying the start of spring buying season.

Nationally, inventory declined 6 percent year over year in May and increased 6 percent compared to April 2018, according to realtor.com monthly data. Median listing prices only grew 8 percent year over year for the third month in a row, down from 10 percent in February. Part of this deceleration can be attributed to 557,000 new listings hitting the market in May, the highest number since July 2015.

Realtor.com® creates the list by analyzing housing market supply and demand by using realtor.com® listing views as an indicator of demand and median days on market as an indicator of supply.

May 2018 Realtor.com® Hotness Rankings

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** Realtor.com® reviewed listing views by market as an indicator of demand and median days on market as an indicator of supply. This analysis led to the identification of the 20 hottest medium-sized to large markets in the country.

Offering the most comprehensive source of information for-sale MLS-listed properties, realtor.com® tracks national housing trends as well as data for the 500 largest U.S. metros. For May trend data on these markets as well other housing trend data, please visit: realtor.com.

About realtor.com®

Realtor.com®, The Home of Home Search℠, offers the most comprehensive source of for-sale MLS-listed properties, among competing national sites, and access to the information, tools and professional expertise to help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.

Contact:

Lexie Puckett Holbert
lexie.puckett@move.com

The Hottest Bachelors In US Real Estate Are?

dotJenna

dotJenna

During the month of July dotJenna will be conducting a very thorough analysis of the Top 10 Hottest Bachelors of Real Estate throughout the US.

Why? Looking like she does, I have to believe she has men asking for her number on a regular basis so it can’t be to find a guy. She says: “Because I can!” and adds “Because I wear hot pink everyday. Because I stand on my head during my seminars. What I’m saying is I’ve nothing to lose–but so much FUN to gain!” You can’t help but admire that 🙂

Nominations must be made via dotJenna’s Facebook page. You have to be a “liker” of the fan page in order to nominate a Real Estate Bachelor and there are some guidelines (like getting permission from the bachelor before you nominate them).

Not sure if you want to participate? Here are some of the contestants, enjoy!