Home values reach new peak as owners hang on to houses
But the tide for buyers could be turning as homes are taking longer to sell
- The typical
U.S. home value breached$350,000 - The number of homes coming onto the market is closer to a normal October than a typically faster-paced June.
- Homes took a day longer to sell than in May, a sign that competition could be waning as home shopping season winds down.
"Home buyers have persisted this spring despite daunting affordability challenges and record-low inventory," said Jeff Tucker, senior economist at Zillow. "Demand typically begins to ease in the summer, and there are signs that competition is waning, but large price declines are unlikely until more homeowners list their homes for sale."
The typical
From hot spots to soft spots: Local home value trends
Affordability remains the key to market strength, as lower-priced metro areas posted the largest monthly gains;
As in May, home values rose from the previous month in all 50 of the largest metro areas. The slowest monthly growth was in
Drought of new listings intensifies
The flow of new homes for sale ticked up
A lack of new listings has dogged the housing market for nearly a year, and higher mortgage rates remain the chief suspect. Rates at
Another explanation could be that homeowners are holding out for higher prices. Home values have steadily increased since January in much of the country, but remain below peaks reached last summer in many markets.
"It could be that some homeowners have been waiting until prices set new highs in their market before opting to cash in their chips," Tucker said.
The total pool of existing homes for sale is lower than any June since at least 2018. It's down
Drop-off in demand means less competition for buyers
Potential buyers could see some slight relief on the horizon, as a few metrics indicate demand and competition are cooling. Sales measured by newly pending listings dipped almost
Listings also lasted longer in June, 11 days before the typical listing went pending, compared to 10 in May. But that's still a much faster market than in 2019, when listings went pending in 21 days.
Rent growth is back to normal
Zillow's latest monthly rent report shows rent growth is back to pre-pandemic norms for this time of year, about
Metropolitan Area* | June Zillow | ZHVI Change, | Monthly | Monthly | New | Total | Listings' |
1.4 % | 105.9 % | -28.1 % | -10.4 % | 11 | |||
1.7 % | 81.7 % | -36.7 % | -25.8 % | 24 | |||
1.9 % | 90.6 % | -33.6 % | -25.9 % | 13 | |||
2.1 % | 81.9 % | -28.5 % | -24.8 % | 7 | |||
1.0 % | 100.5 % | -23.5 % | 9.7 % | 11 | |||
1.0 % | 95.7 % | -20.4 % | 6.8 % | 13 | |||
1.1 % | 79.3 % | -35.2 % | -32.9 % | 6 | |||
1.7 % | 97.9 % | -31.8 % | -23.3 % | 8 | |||
1.7 % | 124.3 % | -30.6 % | 7.9 % | 21 | |||
1.2 % | 119.0 % | -32.4 % | -13.2 % | 13 | |||
1.8 % | 84.4 % | -39.5 % | -36.8 % | 7 | |||
1.0 % | 112.2 % | -48.0 % | -24.2 % | 22 | |||
1.0 % | 74.8 % | -37.2 % | -31.7 % | 13 | |||
1.1 % | 101.5 % | -38.1 % | -24.1 % | 14 | |||
2.0 % | 91.3 % | -28.9 % | -20.9 % | 6 | |||
1.5 % | 91.7 % | -40.9 % | -33.8 % | 7 | |||
1.3 % | 79.2 % | -20.7 % | -17.1 % | 13 | |||
1.7 % | 100.8 % | -35.5 % | -33.1 % | 9 | |||
1.2 % | 129.7 % | -28.3 % | 0.3 % | 11 | |||
0.9 % | 82.9 % | -23.1 % | -4.3 % | 7 | |||
1.3 % | 82.3 % | -27.4 % | -24.1 % | 6 | |||
1.8 % | 95.7 % | -24.0 % | -13.5 % | 5 | |||
0.9 % | 113.2 % | -30.8 % | -5.1 % | 11 | |||
1.7 % | 124.3 % | -34.8 % | -1.1 % | 7 | |||
0.8 % | 102.5 % | -23.5 % | 22.6 % | 19 | |||
1.0 % | 84.3 % | -29.8 % | -13.8 % | 9 | |||
1.4 % | 83.4 % | -30.8 % | -30.9 % | 9 | |||
1.9 % | 86.1 % | -24.9 % | -14.5 % | 7 | |||
1.7 % | 104.0 % | -27.1 % | -22.3 % | 4 | |||
0.4 % | 109.6 % | -32.9 % | 8.5 % | 33 | |||
1.1 % | 84.0 % | -49.9 % | -28.1 % | 14 | |||
1.5 % | 103.6 % | -23.4 % | -15.0 % | 4 | |||
1.7 % | 106.0 % | -23.7 % | -15.5 % | 4 | |||
1.6 % | 116.1 % | -26.1 % | -11.7 % | 6 | |||
1.8 % | 95.3 % | -24.7 % | -15.5 % | 5 | |||
1.6 % | 79.8 % | -36.4 % | -39.8 % | 9 | |||
1.4 % | 117.6 % | -30.0 % | 2.2 % | 11 | |||
1.1 % | 90.2 % | -28.6 % | -24.5 % | 17 | |||
1.6 % | 98.6 % | -34.5 % | -32.9 % | 8 | |||
0.8 % | 121.5 % | -28.1 % | 10.5 % | 29 | |||
1.8 % | 84.5 % | -24.6 % | -29.0 % | 14 | |||
1.0 % | 105.4 % | -25.4 % | 4.9 % | 8 | |||
1.2 % | 110.7 % | -34.0 % | -19.8 % | 6 | |||
0.8 % | 115.3 % | -23.4 % | 4.0 % | 20 | |||
1.5 % | 103.7 % | -33.5 % | -27.5 % | 5 | |||
1.1 % | 90.8 % | -24.7 % | -18.6 % | 5 | |||
2.1 % | 73.2 % | -22.7 % | 41.9 % | 32 | |||
1.1 % | 107.2 % | -28.7 % | -10.1 % | 10 | |||
2.1 % | 87.9 % | -26.0 % | -26.4 % | 5 | |||
2.1 % | 96.4 % | -25.6 % | -19.5 % | 10 | |||
0.8 % | 106.4 % | -23.7 % | -2.6 % | 8 |
* | Table ordered by market size |
1 | The Zillow Real Estate Market Report is a monthly overview of the national and local real estate markets. The reports are compiled by Zillow Research. For more information, visit www.zillow.com/research. |
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