A typical home in the United States is worth over $200,000 for the first time ever, with prices up 7.5% compared to a year ago, the latest index data shows.
High buyer demand coupled with fewer homes for sale is driving up home values across the country with 11% fewer homes on the market than a year ago, the biggest drop in inventory since July 2013.
The index from the June real estate market report from Zillow shows that national home values have been rising at over 7% year on year for the last five months, with many markets consistently seeing double digit growth.
During the height of the housing bubble over a decade ago, the median US 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 Svenja Gudell.
‘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 buyers can do is get their finances in order so they know what is affordable,’ she added.
Home values in Seattle, Dallas and Las Vegas are rising fastest, all reporting year on year gains in double digits. In Seattle prices are up 13% to a median value of $447,100 while prices in Dallas and Las Vegas are up 10.5% and 10% respectively.
San Jose, Columbus, Ohio and San Diego reported the greatest drop in inventory since this time last year. It means that buyers in San Jose have nearly 40% fewer homes to choose from than a year ago, and there are 33% fewer in Columbus and San Diego.
The report also shows that median rent across the nation has been holding steady at about a 1% annual growth for the past six months, taking the median rent across the country to $1,422 per month.
Seattle, Los Angeles and Sacramento reported the greatest annual rent increases among the 35 largest US metros. In Seattle rents are up 5% to $2,142 per month, up 4.5% in Sacramento and up 4% in Los Angeles.
Median rents are falling in 12 of the 35 largest US metros, down the most in Pittsburgh with a fall of 4% and down 3% in Houston. Miami, San Jose and San Francisco are also among the metros where rent is cheaper this year than last.
