22 Cities Where Home Appreciation Is Spiking

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Extreme demand for homes is pushing home values up at a rate not seen since before the Great Recession, a new Zillow report finds.

Several trends — including new millennial homebuyers, record-low interest rates, trends related to the coronavirus pandemic and the relatively small pool of homes for sale — have converged to heat up the market. The hot sellers’ market is a contrast to flat growth in rental prices nationally, as we reported in “Rent Prices Have Dropped in These 9 Formerly Hot Markets.”

The Zillow Home Value Index rose 9.1% from January 2020 to January 2021, the report says. Year-over-year home value growth hasn’t been this high since June 2006.

That rate may even pick up a bit: Zillow economists expect values to rise 10.1% from January 2021 to January 2022.

The demand has shortened the length of time that homes stay on the market, to a median of just 18 days as of mid-January. Compare that to 46 days at the same time last year and the year before.

A demographic bomb is a factor in the hot market. Millennials — defined by Zillow as Americans ages 25-34 — are entering their peak homebuying years. The number of these millennials increased by 12% — or, about 4.9 million people — between 2010 and 2020.

The generation’s size adds to the housing demand. Also, younger buyers are less likely than older ones to sell a previous home when they buy, which is expected to help keep the pool of homes for sale tight.

Government-stoked low mortgage rates — averaging 2.74% for a fixed-rate 30-year mortgage in January — are driving demand as buyers try to seize the opportunity to either pay less for a home or buy a more expensive one than they otherwise could.

Says Zillow:

“An extraordinary number of home buyers, with budgets supercharged by rock-bottom mortgage interest rates, are competing over a limited supply of homes for sale.”

The pandemic is a final factor. Many workers are now clocking in virtually instead of at the office, driving some to seek larger homes and others to move to smaller, more-affordable markets, Zillow says.

While home values increased in all of the 50 largest metro areas in the U.S. from January 2020 to January 2021, some have seen steeper growth rates than others.

Here are the 22 major markets where home values grew 10% or more, along with their typical home price and their home price growth rate:

  • Phoenix: $335,975 (up 17.1% from January 2020 to January 2021)
  • San Jose, California: $1,314,799 (up 14.2%)
  • Austin, Texas: $384,446 (up 13.7%)
  • Salt Lake City: $436,390 (up 13.7%)
  • San Diego: $689,361 (up 13.5%)
  • Seattle: $594,223 (up 12.8%)
  • Tampa, Florida: $257,499 (up 12.8%)
  • Milwaukee: $219,381 (up 12.1%)
  • Cincinnati: $208,352 (up 12%)
  • Providence, Rhode Island: $357,761 (up 12%)
  • Riverside, California: $433,226 (up 11.7%)
  • Buffalo, New York: $193,583 (up 11.4%)
  • Sacramento, California: $478,817 (up 11.3%)
  • Indianapolis: $204,141 (up 11.3%)
  • Memphis, Tennessee: $174,063 (up 11.3%)
  • Cleveland: $176,069 (up 11.1%)
  • Charlotte, North Carolina: $265,397 (up 10.9%)
  • Columbus, Ohio: $234,276 (up 10.8%)
  • Philadelphia: $277,775 (up 10.6%)
  • Kansas City, Missouri: $227,059 (up 10.6%)
  • Pittsburgh: $178,282 (up 10.4%)
  • Detroit: $198,979 (up 10.3%)

If you’re in the market for a new home or refinancing for your existing home, check out the mortgage rate comparison tools in Money Talks News’ Solutions Center.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Source: moneytalksnews.com

Intense Demand and Low Mortgage Rates Drive Home Values to Record Highs – PRNewswire

Monthly appreciation of home values in January matched recent record highs, while annual growth is higher than any time since 2006. Home sales are moving briskly, with homes typically staying on the market for 18 days as of mid-January before the seller has accepted an offer from a buyer — 28 days faster than in 2020 and 2019. For-sale inventory declined again in January, and now stands 26.3% below levels from a year ago.

The Zillow Home Value Index (ZHVI) rose to $269,039 in January, up 1.1% month over month, matching December’s all-time record for monthly growth in data reaching back to 1996. Annual home value appreciation was 9.1% — the largest annual growth recorded since June 2006, before the Great Recession.

“Homebuying demand has pushed the pedal to the metal for price appreciation this winter,” said Jeff Tucker, senior economist at Zillow. “Normally we’d be talking about the spring selling season ramping up, but it looks more like last summer’s selling season simply never ended. Buyers eager to secure more space and lock in today’s rock-bottom interest rates are having to move quickly and aggressively to win out in this competitive market.”

Home values rose in all 50 of the largest U.S. metros, with the most drastic yearly growth in Phoenix (17.1%), San Jose (14.2%) and Austin (13.7%). The slowest growth — a relative term in this case — was seen in San Francisco (5.3%), Chicago (6.7%), and San Antonio (6.7%). 

A few major demand drivers are keeping competition high and the market hot through the customarily cool winter. For one, a wave of millennials are now entering their peak home-buying years. The number of Americans aged 25-34 was 12% higher in July 2020 than July 2010, according to Census estimates — an increase of approximately 4.9 million people. 

Another is mortgage rates, which averaged 2.74% for a standard 30-year fixed in January — up slightly from a historic low of 2.68% in December. These rates are making monthly mortgage payments more affordable as a percentage of income, even when considering rising prices. 

The COVID-19 pandemic and widespread changes to work-from-home policies have also pushed many to reconsider what they want and need in their living space, and where it should be. 

Looking forward, Zillow economists expect home values to grow 10.1% in the next 12 months. The Zillow forecast for existing home sales has been revised up since December, driven by improved pending sales volumes and home purchase applications. Existing home sales are expected to reach 7 million in 2021, 24.8% more than in 2020. 

While home prices are rising quickly, rents are relatively stagnant. The Zillow Observed Rent Index (ZORI) was $1,721 in January, just 0.5%, or $9, higher than in January 2020 and up 0.3% month over month. 

Rents in many expensive, coastal metros are currently much lower than a year ago — down 9.2% in San Francisco, 8.8% in New York, 7.2% in San Jose, and 6.3% in Boston. Many Sun Belt and Midwest metro areas, on the other hand, saw solid rent growth. Phoenix led the largest 35 metro areas with 8.4% annual rent growth, followed by Sacramento (7.6%) and Indianapolis (6.9%).

Metropolitan Area*

Zillow Home Value Index, January 2021

ZHVI – YoY Change, January 2021

Zillow Observed Rent Index, January 2021

ZORI – YoY Change, January 2021

United States

$269,039

9.1%

$1,721

0.5%

New York, NY

$516,732

7.7%

$2,465

-8.8%

Los Angeles-Long Beach-Anaheim, CA

$748,532

9.6%

$2,542

-0.8%

Chicago, IL

$259,459

6.7%

$1,614

-2.9%

Dallas-Fort Worth, TX

$273,348

7.9%

$1,555

2.0%

Philadelphia, PA

$277,775

10.6%

$1,578

2.3%

Houston, TX

$231,195

7.0%

$1,464

0.4%

Washington, DC

$475,850

8.6%

$2,006

-3.4%

Miami-Fort Lauderdale, FL

$323,431

7.7%

$1,913

2.1%

Atlanta, GA

$264,565

9.7%

$1,602

5.7%

Boston, MA

$539,592

9.4%

$2,277

-6.3%

San Francisco, CA

$1,178,615

5.3%

$2,876

-9.2%

Detroit, MI

$198,979

10.3%

$1,293

6.1%

Riverside, CA

$433,226

11.7%



Phoenix, AZ

$335,975

17.1%

$1,572

8.4%

Seattle, WA

$594,223

12.8%

$1,866

-5.5%

Minneapolis-St Paul, MN

$320,438

8.6%

$1,543

0.8%

San Diego, CA

$689,361

13.5%

$2,383

4.3%

St. Louis, MO

$197,073

9.0%

$1,093

3.8%

Tampa, FL

$257,499

12.8%

$1,589

6.6%

Baltimore, MD

$319,175

8.2%

$1,646

2.2%

Denver, CO

$488,746

9.0%

$1,709

0.1%

Pittsburgh, PA

$178,282

10.4%

$1,177

1.2%

Portland, OR

$458,486

9.7%

$1,649

1.2%

Charlotte, NC

$265,397

10.9%

$1,514

3.1%

Sacramento, CA

$478,817

11.3%

$1,916

7.6%

San Antonio, TX

$222,816

6.7%

$1,330

2.5%

Orlando, FL

$276,168

7.5%

$1,594

2.2%

Cincinnati, OH

$208,352

12.0%

$1,259

5.5%

Cleveland, OH

$176,069

11.1%

$1,121

3.7%

Kansas City, MO

$227,059

10.6%

$1,193

5.0%

Las Vegas, NV

$315,966

8.0%

$1,493

6.7%

Columbus, OH

$234,276

10.8%

$1,278

5.2%

Indianapolis, IN

$204,141

11.3%

$1,262

6.9%

San Jose, CA

$1,314,799

14.2%

$2,892

-7.2%

Austin, TX

$384,446

13.7%

$1,511

-1.2%

Virginia Beach, VA

$264,060

8.3%

$1,376

6.1%

Nashville, TN

$304,571

8.9%

$1,595

1.9%

Providence, RI

$357,761

12.0%

$1,603

8.2%

Milwaukee, WI

$219,381

12.1%

$1,169

2.7%

Jacksonville, FL

$252,678

9.4%

$1,370

5.6%

Memphis, TN

$174,063

11.3%

$1,337

10.0%

Oklahoma City, OK

$170,138

7.5%

$1,098

3.9%

Louisville-Jefferson County, KY

$197,548

8.7%

$1,044

4.7%

Hartford, CT

$260,546

9.5%

$1,353

5.0%

Richmond, VA

$268,405

8.4%

$1,294

4.8%

New Orleans, LA

$224,193

7.9%

$1,290

3.8%

Buffalo, NY

$193,583

11.4%

$1,124

5.3%

Raleigh, NC

$307,481

8.8%

$1,503

2.6%

Birmingham, AL

$188,327

9.8%

$1,129

5.5%

Salt Lake City, UT

$436,390

13.7%

$1,408

3.3%

*Table ordered by market size 

About Zillow Group

Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make it easier to unlock life’s next chapter. 

As the most-visited real estate website in the U.S., Zillow® and its affiliates offer customers an on-demand experience for selling, buying, renting or financing with transparency and nearly seamless end-to-end service. Zillow Offers® buys and sells homes directly in dozens of markets across the country, allowing sellers control over their timeline. Zillow Home Loans™, our affiliate lender, provides our customers with an easy option to get pre-approved and secure financing for their next home purchase. Zillow recently launched Zillow Homes, Inc., a licensed brokerage entity, to streamline Zillow Offers transactions.  

Zillow Group’s affiliates and subsidiaries include Zillow®, Zillow Offers®, Zillow Premier Agent®, Zillow Home Loans™, Zillow Closing Services™, Zillow Homes, Inc., Trulia®, Out East®, StreetEasy® and HotPads®. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). 

SOURCE Zillow

Related Links

https://www.zillow.com

Source: prnewswire.com

20 Best Cities for Trick or Treating in 2017

San Francisco leads the pack in candy-corn-doling cities. Is your hometown on the list?

Pumpkins, haunted houses and costumed kiddos can only mean one thing – it’s time for Halloween!

Every year, Zillow’s team of economists crunches the numbers to find the best cities for little ghosts and ghouls to score the best candy. These cities are based on places where home values are high, there are plenty of kids under 10, and where homes are close together, meaning less walking while you’re going door-to-door. After sliding to third place last year, San Francisco reclaimed its title as the #1 city for trick-or-treating, followed by San Jose and Philadelphia, which was last year’s top city. This year’s newcomers to the list are Long Beach, Calif., El Paso, Texas, and Mesa, Ariz.

Check out the complete Trick-or-Treat Index, and the top neighborhoods in each city, below.

Happy Halloween!

Top Cities

Neighborhood Rankings

Methodology

To calculate the Trick-or-Treat Index, Zillow uses the Zillow Home Value Index, single-family home density, and the share of the population under 10 years old in cities with a population of at least 500,000.  This data is combined to reveal the cities where trick-or-treaters can get the best candy in the least amount of time.

Source: zillow.com

4 Surprising Things That May Increase How Much Your Home Is Worth

Does your home offer any of the perks some buyers will pay more for?

To understand how much your home is worth, you have to know what affects its value. The Zestimate home value is Zillow’s tool for extrapolating the real market value of your home, based on existing home-related data and actual sales prices in your area.

Thousands of data points correlate with home values and sale prices — some of which are obvious (like the condition of the home) and some that aren’t.

Here are several surprising things that can affect either the existing value of your home or the price someone is willing to pay for it, all based on data.

1. Proximity to a Starbucks

How far do you have to drive to get a Frappuccino? If the answer is “not that far,” you’re in luck.

A 2015 Zillow report found that, between 1997 and 2014, homes within a quarter-mile of a Starbucks increased in value by 96 percent, on average, compared to 65 percent for all U.S. homes, based on a comparison of Zillow Home Value Index data with a database of Starbucks locations.

To evaluate if this effect is isolated to Starbucks, the research team looked at another coffee hot spot (one with particular pull on the East Coast): Dunkin’ Donuts.

The data showed that homes near Dunkin’ Donuts locations appreciated 80 percent, on average, during the same 17-year period — not quite as high as homes near a Starbucks, but still significantly above the 65 percent increase in value for all U.S. homes.

2. Blue kitchens and blue bathrooms

Beyond America’s obsession with curb appeal, what’s inside your house counts a lot too — especially the colors you paint the rooms (particularly the kitchen).

According to Zillow’s 2017 Paint Color Analysis, which examined more than 32,000 photos from sold homes around the country, homes with blue kitchens sold for a $1,809 premium, compared to similar homes with white kitchens.

Blue is also a popular bathroom shade. The same analysis found that homes with pale blue to soft periwinkle-blue bathrooms sold for $5,440 more.

Walls painted in cool neutrals, like blue or gray, can signal that the home is well cared for or has other desirable features.

3. Trendy features

Joanna Gaines’ aesthetic is permeating more than just your YouTube search history. Zillow listings mentioning the shiplap queen’s favorite features — like barn doors and farmhouse sinks — sell faster and for a premium, according to a 2016 Zillow analysis of descriptions of more than 2 million homes sold nationwide.

Listings with “barn door” in the description sold for 13.4 percent more than expected — and 57 days faster than comparable homes without the keyword. Meanwhile, listings touting “farmhouse sink” led to a nearly 8 percent sales premium.

Sellers can use the listing descriptions to highlight trendy details and features that might not be noticeable in the photos.

4. How close you are to a city

If you own a home in a major American metropolitan area, you’re most likely sitting on a significant (and rapidly appreciating) financial asset. Case in point: Home values in the New York, NY, metro area are worth $2.6 trillion, per a recent Zillow analysis.

The average urban home is now worth 35 percent more than the average suburban home. Since 2012, the median home value in urban areas has increased by 54 percent, while the median home value in suburban areas is up just 38 percent.

Related:

Source: zillow.com