The median home value rose 6.8 percent over the past year as of December. Rent prices, though, have leveled off, remaining unchanged from November to December, and only increasing 1.5 percent from the end of 2015.
Zillow reports that the national median rent price is currently $1,403 per month. If that figure remains consistent, it might lessen some of the advantages of owning over renting. Potential buyers, Millennial first-timers in particular, may stay off the market a bit longer and sit out bidding war frenzies caused by low inventory, for instance.
This softening in demand, however slight, could lead to slower home value growth – and as home value growth slows, those homeowners waiting to sell until they could extract maximum profit from their home might be more tempted to begin doing so.