Shifting Winds of Home Values
Home-Value Growth Slowing in Several Hot Markets (July 2018 Market Report) Markets that were the fastest-growing in the country just a year ago are starting to slow down, according to a report.
The Real Estate Market Report for July shows that otherwise expensive and in-demand markets such as Seattle, Tampa, Sacramento, and Portland, which were leading the market, have reported the largest slowdown in home value appreciation year-over-year.
The median U.S. home value climbed 8 percent over the past year to $218,000, but in a sign that buyers are beginning to balk at sustained, rapid escalations in prices, home value growth is slowing in 20 of the 35 largest housing markets
While 8 percent annual growth for U.S. home values is above the 7.3 percent annual growth from July 2017, it is down slightly from growth earlier in 2018. And forecasts the annual appreciation rate will slow to 6.8 percent by this time next year.
Home values are still growing faster in most major markets than they did historically, one reason it’s too soon to call it a buyer’s market. Lower-valued homes also continue brisk gains: Homes valued in the lower third nationally rose 10.9 percent in value year-over-year, while homes valued in the top third rose at less than half that, at 4.9 percent.
Rent slowdown, too
The rental market shows signs of a slowdown as well.
The median U.S. rent rose 0.5 percent over the past year to $1,440 (a month), down from 1.6 percent growth a year earlier. Among the 35 largest housing markets, 21 had slower annual rent appreciation in July than a year earlier. Still, rents rose 0.3 percent in Seattle and fell by 0.7 percent in Portland and 1 percent in Kansas City.
Additionally, the amount of homes for sale has ped, rate of this decline is slowing. Potential home buyers may find around four percent fewer homes on the market year-over-year, however, this is the smallest decline in 17 months.
Despite the slowdown in many of the nation's more affordable areas, 'home value growth has perked up as buyers continue to seek good value for their money.
But it's clear that the winds that have boosted sellers over the past few years are ever-so-slightly starting to shift.'
Getting ready to Sell or Buy doesn’t have to be a huge undertaking, but it’s one where details really matter. When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy your home.
#Rentals #Homeownership #UtahRealEstate
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