Zillow reports that annual home value reached its lowest level since January 2013, as the average home-value grew 3.8% to $243,225 in November.
Annual home-value growth has slowed in each of the past 19 months. The year-over-year dip had not exceeded 0.3 percentage points month-to-month during this period.
Quarterly home-value growth accelerated in each of the past three months, though it remains slower than this time last year.
Among the 35 largest U.S. metros, San Antonio, Texas, and Washington, D.C. were the only two markets to grow at a faster rate than this time last year.
San Jose, California; Las Vegas, Nevada; San Francisco, California; and Seattle, Washington slowed the most compared to 2018. San Francisco and San Jose continue to be the only large markets with declining year-over-year home values, although the numbers have been less negative over the past month.
Phoenix, Arizona, is the fastest-growing top-35 market, with values up 6.1% annually. Columbus, Ohio, saw values grow at 5.9%, Charlotte, North Carolina, had value rise 5.8%, and Indianapolis, Indiana, reported value growth of 5.7%.
"As we approach the winter holidays, housing, too, is taking a breather," said Skylar Olsen, Zillow's Director of Economic Research. "Motivated sellers trying to close before the end of the year dropped their list prices in September and October, with November numbers showing the expected quiet in listing activity. That quiet is echoed by the slower annual appreciation and the lower-than-normal available inventory. But as we anticipate longer days to come, so too we anticipate some relief for housing. Lifting housing starts and permit numbers, strong jobs reports and the steady progress towards more stable and sustainable home value appreciation all point to a healthier 2020 for housing."
Inventory also fell in November, dropping by 6.4% in November—the largest drop in 20 months. There are 102,463 fewer homes on the market than at this time last year. Seattle’s 28.8% drop in inventory was the largest in the nation. Sacramento, California, saw inventory fall 21.2% and San Diego, California, reported inventory fell 19.9%.