The gradual slowdown in home values since the beginning of 2019 continued in June. According to Zillow's Real Estate Market report, median U.S. home values grew by 5.2% annually, to $227,700. This, after recording an 8.1% growth six months earlier in January 2019.
Home value growth saw their first monthly dip in April 2019 after more than seven years of continuous growth. However, the report indicated that home values recovered from this month-over-month dip in May and June. The trend, Zillow said, was more indicative of a market that was normalizing and slowing to a more sustainable pace.
The large markets in which home value growth slowed the most in June were San Jose, Seattle, San Francisco, Las Vegas, and Dallas. However, the cities where home values continued to grow were some of the most affordable markets in the country. They included New Orleans, Birmingham, Oklahoma City, Raleigh, Cincinnati, Milwaukee, Indianapolis, and Louisville.
Salt Lake City (up 9.3%), Indianapolis (up 8.8%) and Charlotte (up 7.7%) saw the strongest annual home value growth.
The slowdown in home values, however, did not impact the growth of the rental market, the report indicated. Median rents rose 3% in June and were up in 49 out of the nation's top 50 markets.
"As much as record numbers of new apartments led many to believe that rental markets might have become oversaturated with new supply, the reality is that demographics and general economic health continue to keep the pressure on," said Skylar Olsen, Director of Economic Research at Zillow.
Looking at housing supply, the report found that the number of homes for sale fell 0.8% in June compared to a year ago, and was down 1.2% from May. Inventory was up in only 26 of the 50 top markets. Las Vegas, San Jose, Salt Lake City, San Francisco, and Denver were some of the top cities that saw inventory growth.