Gains come after almost 4 years of declines
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There was an increase in homes for sale in October with a 3% gain from a year earlier.
Data from Zillow shows that October’s gain was helped by a 0.1% rise in inventory in September and could be a sign that future increases could be on the way.
Some of the largest gains were in the nation’s hottest markets including San Jose, which led with a 93.1% year-over-year rise, although from a record-low starting point in October 2017 that meant just 1,500 new listings.
"In yet another sign that the housing market is cooling, we're finally starting to see inventory return after several years of annual declines," said Zillow Senior Economist Aaron Terrazas. "The combination of tight supply and strong demand have pushed up home values in recent years, but markets always ebb and flow and there is no doubt that the tides that have buoyed sellers are shifting.”
But the small nationwide increase in inventory does not mean buyers can expect an easy ride. Rising mortgage rates continue to challenge affordability especially for those trying to enter the market.
“First-time buyers have benefited from flat or falling rents over the past year – making it somewhat easier to save for a down payment – but the decline in rents could be short-lived if higher buying costs push some people back toward the rental market," added Terrazas.
Home values remained stable
Home value appreciation was running at 7.7% in October with a US median of $221,500.
Although this was in line with September, local markets were split with around half of the largest 35 metros posting slower annual price gains, led by Seattle with a 12.6% decline.
Leading the gains in annual price appreciation were San Jose and Las Vegas.
|
Metropolitan Area |
Zillow |
ZHVI |
Zillow Rent |
ZRI Year- |
Inventory |
|
United States |
$ 221,500 |
7.7% |
$ 1,442 |
-0.1% |
3.0% |
|
New York, NY |
$ 433,700 |
5.2% |
$ 2,378 |
-1.9% |
9.0% |
|
Los Angeles-Long Beach- |
$ 648,900 |
5.0% |
$ 2,756 |
0.7% |
31.9% |
|
Chicago, IL |
$ 223,200 |
5.2% |
$ 1,638 |
-1.8% |
6.2% |
|
Dallas-Fort Worth, TX |
$ 235,500 |
10.9% |
$ 1,597 |
-0.6% |
14.8% |
|
Philadelphia, PA |
$ 230,200 |
4.5% |
$ 1,570 |
-1.4% |
-5.5% |
|
Houston, TX |
$ 202,100 |
6.5% |
$ 1,551 |
0.3% |
5.5% |
|
Washington, DC |
$ 401,600 |
3.5% |
$ 2,136 |
-0.8% |
0.6% |
|
Miami-Fort Lauderdale, FL |
$ 279,700 |
7.8% |
$ 1,859 |
0.3% |
10.6% |
|
Atlanta, GA |
$ 212,800 |
13.1% |
$ 1,397 |
0.6% |
-0.8% |
|
Boston, MA |
$ 459,600 |
5.9% |
$ 2,369 |
-1.5% |
17.8% |
|
San Francisco, CA |
$ 967,200 |
9.6% |
$ 3,403 |
-0.6% |
41.6% |
|
Detroit, MI |
$ 158,300 |
9.3% |
$ 1,197 |
0.0% |
11.6% |
|
Riverside, CA |
$ 360,700 |
5.3% |
$ 1,906 |
3.1% |
21.6% |
|
Phoenix, AZ |
$ 260,400 |
7.5% |
$ 1,361 |
0.6% |
-1.9% |
|
Seattle, WA |
$ 488,600 |
7.1% |
$ 2,173 |
-2.4% |
36.6% |
|
Minneapolis-St Paul, MN |
$ 264,800 |
6.9% |
$ 1,642 |
0.6% |
2.6% |
|
San Diego, CA |
$ 589,800 |
5.4% |
$ 2,547 |
0.0% |
43.5% |
|
St. Louis, MO |
$ 164,500 |
5.9% |
$ 1,141 |
-1.0% |
-1.8% |
|
Tampa, FL |
$ 209,700 |
9.7% |
$ 1,392 |
1.6% |
9.4% |
|
Baltimore, MD |
$ 266,600 |
4.5% |
$ 1,741 |
-0.1% |
0.3% |
|
Denver, CO |
$ 400,900 |
6.2% |
$ 2,060 |
0.3% |
19.0% |
|
Pittsburgh, PA |
$ 142,700 |
6.7% |
$ 1,088 |
0.2% |
-10.0% |
|
Portland, OR |
$ 392,300 |
4.8% |
$ 1,836 |
-3.0% |
17.5% |
|
Charlotte, NC |
$ 201,700 |
11.1% |
$ 1,296 |
0.2% |
2.0% |
|
Sacramento, CA |
$ 402,600 |
4.7% |
$ 1,847 |
1.2% |
21.9% |
|
San Antonio, TX |
$ 189,400 |
6.5% |
$ 1,332 |
-1.0% |
11.2% |
|
Orlando, FL |
$ 232,300 |
9.8% |
$ 1,454 |
2.1% |
5.9% |
|
Cincinnati, OH |
$ 164,900 |
6.8% |
$ 1,281 |
-0.1% |
3.0% |
|
Cleveland, OH |
$ 143,900 |
6.8% |
$ 1,142 |
-0.9% |
N/A |
|
Kansas City, MO |
$ 187,300 |
9.3% |
$ 1,267 |
-1.0% |
-4.6% |
|
Las Vegas, NV |
$ 276,200 |
14.7% |
$ 1,312 |
1.5% |
-15.9% |
|
Columbus, OH |
$ 186,000 |
8.3% |
$ 1,338 |
0.5% |
4.8% |
|
Indianapolis, IN |
$ 159,500 |
11.9% |
$ 1,198 |
-1.3% |
N/A |
|
San Jose, CA |
$ 1,290,000 |
17.9% |
$ 3,506 |
-0.8% |
93.1% |
|
Austin, TX |
$ 302,100 |
6.5% |
$ 1,685 |
-1.1% |
7.2% |
