As per Zillow Home Value Index, home values along the length and breadth of the United States rose at their quickest yearly pace from 2006, the time of housing bubble. Values of properties are about 6.5 percent dearer compared to the identical period in November 2015. The Zillow Home Value Index touched $192,500. The number is only two percent short of records established in 2007.
House rents, which made news as they went north at record pace, slowed significantly with a yearly growth of 1.5 percent. It is expected that this rate will continue through 2017. The average monthly rent now comes to $1,403. The report authored by Zillow shows that robust growth is evident in a few booming markets. These include Dallas, Seattle, Denver and Portland. It is no coincidence that the job markets in these cities are strong and hence attracted new home buyers in 2017.
Home values have seen fastest growth at 11 percent every year. It is a far cry from the time the housing bubble tattered into shreds and there was a consequent plummeting of home values. At that time it fell 7.4 percent YOY during dark days of economic crisis. Steady recovery came only in 2012. According to Svenja Gudell, the chief economist of Zillow, growth in home values remains strong. Buyer demand is still robust. There continues to be a few for sale inventory in multiple markets all over the United States. She added that present conditions are much different compared to 2006. Home values rose quickly at that time as well. Only this time the economic fundamentals remain strong. In 2007, there was widespread speculation in real estate and mortgage credit sloshed around cheap.
Home values increased the most in three cities: Dallas, Portland and Seattle. These three rank among the top in 35 biggest metropolises. Home values in Portland rose 14 percent to reach an average value coming to $351,800. The home values of both Dallas and Seattle went up by 12 percent from the time of November 2015. Quickest appreciation of rent was witnessed by Seattle for the successive sixth month- coming to nine percent. Rents in Sacramento and Portland went up seven percent YOY. The report by Zillow continues to say that inventory remains a thorny issue for property buyers all over the United States. This is as there are about six percent fewer residences compared to a year before.