Housing is breaking bubble-era records in about half of major metropolitan areas, with the median value nationwide up 6.8 percent year-over-year, or $4,100 higher than it was in April 2007, according to the July Zillow® Real Estate Market Reports. Fifteen of the top 35 major metros have seen median values soar higher than ever before, and 48 percent of all homes are valued beyond what they were prior to the bust. The national median value in the Zillow Home Value Index (ZHVI) is $200,700.
“Home values are high, but affordability, while suffering a bit lately, is still okay, largely because of very low mortgage interest rates helping to keep monthly mortgage payments in check,” says Dr. Svenja Gudell, chief economist at Zillow. “The more pressing issue is abnormally low inventory, which is translating into an extremely competitive environment for home shoppers. Bidding wars and homes selling for over asking price have been common themes in many markets this summer, and continued competition in the face of limited supply will only continue to push home values up going forward.
“Home shoppers that were hoping to buy this summer but haven’t yet found their dream home may have better luck once September and October roll around, when we can expect to see more homes coming online and less competition,” Gudell says.
There are now 13 percent fewer homes for sale compared to one year ago, the reports show. The national median rent in the Zillow Rent Index (ZRI), meanwhile, has posted an annual gain of 1.6 percent, with the median rent totaling $1,427.
For more information, please visit www.zillow.com.
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