Home >> Daily Dose >> Home Values Heat Up to Record Highs
Print This Post Print This Post

Home Values Heat Up to Record Highs

shutterstock_215442970According to the October Zillow Real Estate Market Report—reporting the latest data—home values are gaining thousands of dollars in value each month.

In October, the national home value rose 6.5 percent to a median of $203,400—making the median home $12,500 more valuable than it was a year ago.

"Home values are growing at a historically fast pace, and those potential buyers want to get in the market while they still can,” said Zillow Chief Economist Dr. Svenja Gudell. “But with homes gaining so much value in just one year, buyers–especially first-time buyers–have to set aside more and more money for a down payment just to keep up with them.”

Across the U.S., the report notes that over half of the nation’s largest metropolitan statistical areas (MSAs) currently have home values higher than before the start of the Great Recession.

Regionally, the San Jose, California market reported the greatest increase in home values over 2017, with homes worth 12.3 percent—a $118,200 increase—compared to the same month last year.

Seattle and Las Vegas MSAs experienced double-digit increases in home value appreciation as well at 11.7 percent and 11.2 percent, respectively.

What continues to drive up these values? According to Gudell, it’s the current inventory crisis that shows no signs of waning that’s impacting potential buyers all across the country.

Today, there are 11.7 percent fewer homes for sale in the U.S. compared to 2016, the report noted. Supply has declined most significantly in San Jose, San Francisco and San Diego over the past year.

In San Jose, there are 60.4 percent fewer homes on the market than October 2016, with 32 percent less in San Francisco and 31 percent fewer homes for sale in San Diego.

Gudell added that unfortunately, there's just not enough homes for sale, and demand will continue to drive prices higher until the market reaches a better balance between supply and demand.

To view the full list of MSAs, click here.

About Author: Nicole Casperson

Nicole Casperson is the Associate Editor of DS News and MReport. She graduated from Texas Tech University where she received her M.A. in Mass Communications and her B.A. in Journalism. Casperson previously worked as a graduate teaching instructor at Texas Tech's College of Media and Communications. To contact Casperson, e-mail: [email protected]
x

Check Also

Most Areas Report Declining Contract Activity

The Pending Home Sales Index (PHSI), which measures housing contract activity, again fell in August, ...