Typical U.S. Home Worth More Than $200,000 for First Time

2017-07-20 / @newswire

SEATTLE, July 20, 2017 /PRNewswire/ -- The typical U.S. home is worth over $200,000 for the first time ever, according to the June Zillow (R) Real Estate Market Reports^ⁱ. The national median home value is now $200,400, up about 7 and a half percent since this time last year.

High buyer demand coupled with fewer homes for sale is driving up home values across the country -- there are 11 percent fewer homes on the market than a year ago, the greatest drop in inventory since July 2013. National home values have been rising at over 7 percent annually for the past five months, with many markets consistently rising in the double-digits.

During the height of the housing bubble over a decade ago, the median U.S. home value peaked at $196,600 but never surpassed the $200,000 threshold until now.

"The national housing market remains red hot and shows no signs of slowing, even as some local markets like the Bay Area have noticeably cooled," said Zillow Chief Economist Dr. Svenja Gudell. "But even in areas where the housing market has slowed, home values are at or very near peak levels, selection is limited, demand is high and competition is fierce. Given these high costs and high competition, the most important thing you can do is get your finances in order so you know what you can comfortably afford, and find an agent who has experience with bidding wars and will help you stand out in a competitive market, especially if you're buying for the first time."

Home values in Seattle, Dallas and Las Vegas are rising fastest, all reporting year-over-year gains in the double-digits. In Seattle, home values are up 13 percent year-over-year to a median home value of $447,100. Home values in Dallas and Las Vegas are up 10.5 and 10 percent, respectively.

San Jose, Columbus, Ohio and San Diego reported the greatest drop in inventory since this time last year. Home shoppers in San Jose will have nearly 40 percent fewer homes to choose from than a year ago, and there are 33 percent fewer in Columbus and San Diego.

Median rent across the nation has been holding steady at about a 1 percent annual gain for the past six months -- the median rent across the country is now $1,422 per month, up just over 1 percent annually. Seattle, Los Angeles and Sacramento, Calif. reported the greatest annual rent increases among the 35 largest U.S. metros. In Seattle, rents are up 5 percent to a Zillow Rent Indexⁱⁱ (ZRI) of $2,142 per month. Median rent in Sacramento is up 4.5 percent, and in Los Angeles, median rent has risen 4 percent.

Median rent is falling in 12 of the 35 largest U.S. metros, falling the most in Pittsburgh (down 4 percent) and Houston (down 3 percent). Miami, San Jose and San Francisco are also among the metros where rent is cheaper this year than last.

In June, mortgage ratesⁱⁱⁱ on Zillow ended at 3.76 percent, the lowest month-ending rate since October 2016. Rates in June were the most stable they have been in ten months, holding within a 9 basis point range over the month^iv. Mortgage rates were at or near their monthly lows of 3.67 percent for most of the month. 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.

Metropolitan Area	Zillow Home Value Index^v (ZHVI)	Year-over- Year ZHVI Change	Zillow Rent Index (ZRI)	Year-over- Year ZRI Change	Year-over-Year Inventory Change
United States	$ 200,400	7.4%	$ 1,422	1.1%	-11.4%
New York, NY	$ 422,300	9.2%	$ 2,376	-1.6%	-17.6%
Los Angeles-Long Beach-Anaheim, CA	$ 609,800	6.1%	$ 2,682	4.2%	-16.8%
Chicago, IL	$ 211,200	6.5%	$ 1,638	-0.4%	-11.9%
Dallas-Fort Worth, TX	$ 211,000	10.5%	$ 1,584	2.9%	9.0%
Philadelphia, PA	$ 218,700	4.8%	$ 1,567	-0.9%	-15.3%
Houston, TX	$ 178,400	3.9%	$ 1,538	-2.8%	10.6%
Washington, DC	$ 382,600	3.1%	$ 2,126	0.2%	-20.2%
Miami-Fort Lauderdale, FL	$ 253,100	7.6%	$ 1,849	-1.9%	1.6%
Atlanta, GA	$ 179,900	8.1%	$ 1,348	3.0%	-12.3%
Boston, MA	$ 427,700	7.8%	$ 2,364	2.6%	-21.2%
San Francisco, CA	$ 854,300	5.7%	$ 3,372	-0.5%	-25.8%
Detroit, MI	$ 141,000	9.5%	$ 1,162	-1.6%	-20.9%
Riverside, CA	$ 328,800	6.1%	$ 1,793	3.5%	-19.8%
Phoenix, AZ	$ 236,900	6.5%	$ 1,322	2.2%	-11.5%
Seattle, WA	$ 447,100	13.1%	$ 2,142	5.4%	-24.1%
Minneapolis-St Paul, MN	$ 247,400	8.6%	$ 1,593	3.5%	-30.4%
San Diego, CA	$ 548,000	6.9%	$ 2,484	2.9%	-32.5%
St. Louis, MO	$ 148,600	3.6%	$ 1,140	0.0%	-12.7%
Tampa, FL	$ 185,700	10.1%	$ 1,353	1.7%	-20.8%
Baltimore, MD	$ 261,000	3.8%	$ 1,727	-0.5%	-20.7%
Denver, CO	$ 370,000	8.8%	$ 2,009	0.2%	-3.6%
Pittsburgh, PA	$ 137,400	5.0%	$ 1,074	-3.9%	-10.5%
Portland, OR	$ 367,400	8.3%	$ 1,825	3.5%	4.0%
Charlotte, NC	$ 174,800	8.2%	$ 1,263	1.6%	-21.2%
Sacramento, CA	$ 369,200	8.7%	$ 1,744	4.5%	-14.5%
San Antonio, TX	$ 162,700	6.9%	$ 1,332	1.1%	-2.4%
Orlando, FL	$ 207,000	9.6%	$ 1,405	2.7%	-14.5%
Cincinnati, OH	$ 152,600	6.6%	$ 1,257	1.2%	-22.7%
Cleveland, OH	$ 134,600	5.5%	$ 1,149	0.1%	3.3%
Kansas City, MO	$ 159,400	6.8%	$ 1,266	2.0%	7.7%
Las Vegas, NV	$ 225,500	10.2%	$ 1,252	1.1%	1.4%
Columbus, OH	$ 162,500	4.7%	$ 1,303	0.8%	-32.9%
Indianapolis, IN	$ 138,100	5.0%	$ 1,189	-0.4%	-24.0%
San Jose, CA	$ 1,013,700	5.9%	$ 3,472	-1.1%	-39.4%
Austin, TX	$ 271,500	7.1%	$ 1,695	-1.1%	23.1%

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

Zillow and Zestimates are registered trademarks 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 (R) (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 In the average month, rates moved in a 20 basis point range.
^v 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.

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SOURCEZillow