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US house price growth nears six-year low

NerdWallet Mortgages House price growth

US house price growth reached a near six-year low of 3.8% in November 2019, Zillow’s Real Estate Market Report has found.

This is the lowest rate of growth since January 2013, and puts the average house price at $243,225.

Breaking it down by area, Phoenix, AZ, saw the highest house price growth of 6.1%, followed by Columbus, OH (5.9%), and Indianapolis, IN (5.7%).

San Jose, CA, saw a steep drop of -8.1% but prices still average at $1,163,434.

Skylar Olsen, Zillow’s director of economic research, said: “As we approach the winter holidays, housing, too, is taking a breather.

“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.”

Across the US rent growth accelerated for the fifth straight month in November, up 2.3% annually to $1,600.

Meanwhile for-sale inventory fell 6.4% from a year ago, meaning there are 102,463 fewer homes on the market than a year ago.