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.

San Jose and Raleigh are Zillow’s Hottest Housing Markets for 2018

Tech-towns Seattle and San Francisco also make top rankings along with several Sun Belt markets

Seattle, WA – Jan. 9, 2018 (PRNewswire) Today, Zillow® announced its predictions for 2018’s hottest housing markets. Topping the list this year is Silicon Valley’s San Jose, Calif., followed by Raleigh, N.C. and Seattle.

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To identify 2018’s hottest housing markets, Zillow looked for places with quickly rising home values and rental prices, low unemployment rates, steady income growth and strong job opportunities with lots of people moving to the area.

Austin, Texas has the strongest population growth on the top 10 list, at 2.8 percent. Seattle has the highest forecasted rental appreciation, with rents in the metro expected to climb another 3.5 percent over the next 12 months.

Rapid home value growth and a high number of job openings per person are the driving forces behind San Jose’s position at the top of Zillow’s list. The San Jose housing market has been booming for several years, mainly due to people moving to the area for high-paying jobs. Zillow’s analysis highlights just how strong the San Jose market really is. While San Francisco home values have recently started to cool, San Jose is off to the races, with home values projected to rise 9 percent in 2018. The median home value in San Jose is over $1 million, and the median rental price is $3,514 per month. Over the past five years, San Jose home values have appreciated 78 percent.

Although Zillow’s list is largely made up of established tech towns, two increasingly hot North Carolina markets also made the top 10 ranking. Income and population growth in Charlotte and Raleigh are among the strongest of all markets on the list. Raleigh anchors North Carolina’s “Research Triangle” and saw a 9 percent increase in income growth last year. In Charlotte, a fast-growing banking center, incomes rose about 9.5 percent over the past year.

Zillow’s Top 10 Housing Markets for 2018:

1. San Jose, CA
2. Raleigh, NC
3. Seattle, WA
4. Charlotte, NC
5. San Francisco, CA
6. Austin, TX
7. Denver, CO
8. Nashville, TN.
9. Portland, OR
10. Dallas, TX

“This list shows that just because a market is smaller or more affordable doesn’t mean it isn’t dynamic,” said Zillow senior economist Aaron Terrazas. “Growing cities in the Sun Belt, places like Raleigh, Charlotte and Nashville, offer plenty of opportunities healthcare and finance, while providing a less-expensive, but still-convenient, alternative to the larger and pricier markets in the Northeast. The tech industry continues to roar, attracting thousands of new residents per year to tech-dominant markets like Seattle, Denver and the Bay Area. The higher cost of living in these areas is offset to a large degree by well-paying tech jobs.”

In nine out of the 10 markets on Zillow’s list, home values are expected to rise at a faster pace than the nation overall, with the exception of Denver. Nationally, Zillow expects home values to appreciate 3.2 percent over the next year.

Zillow used six variables to determine the hot market predictions: Zillow’s Home Value and Rent Forecast, which forecasts the change in the Zillow Home Value Index(i) and Zillow Rent Index(ii) over the next 12 months, recent income and population growth(iii), current unemployment rates(iv), the number of job openings per person using data from Glassdoor. Those six variables were then scaled for the 50 largest U.S. metros and combined to form a ‘hotness score,’ producing the top ten list.

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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. 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 Inc. (NASDAQ: Z and ZG), and headquartered in Seattle.

Zillow is a registered trademark 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 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) Incomes in this analysis were determined using Moody’s Analytics® estimates from the Census Bureau. Population growth was determined using ACS 2015 and 2016 1-year estimates.

(iv) Unemployment rates in this analysis were determined using Moody’s Analytics® estimates from the Bureau of Labor Statistics, Local Area Unemployment Statistics.

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!