flexiblefullpage - default
Currently Reading

Home Value Growth Slows, Potential Decline to Come

Advertisement
billboard - default

Home Value Growth Slows, Potential Decline to Come


June 18, 2020
For sale sign with a price reduced sign on top
By PondShots

With the continued and unprecedented effects COVID-19 has on the housing market, home values have still continued to grow on-pace relative to last year. Even better, the pace is slightly faster than prior months, according to Zillow’s May market report. This steady gain may be an indication of value declines for the remainder of the year as May’s declining numbers have begun a potential future of dropping home values. Homebuyers have not stopped, but these decreases in home value could dry up the pool of those who sought to buy a home prior to the pandemic.


The typical home value in the U.S. was $251,598 in May, up 4.3% year over year — a small acceleration from April’s 4.2% pace of annual growth. But by more recent measures the growth rate has begun to slow: In April, home values grew 0.41% month over month. In May, that slowed to 0.35%, the biggest one-month slowdown since March 2019 and a possible indicator that the market is headed for home value declines in the coming months.

 
Zillow’s most-recent forecast calls for a 1.8% drop in prices through October 2020 from the highs in February, with a slow price recovery by mid-spring in 2021. The year-over-year change is expected to bottom out at -0.7%.


In 27 of the nation’s 35 largest metro areas, monthly home value growth in May was slower than in April, and in five large markets (San Francisco, San Jose, Pittsburgh, Los Angeles and Sacramento), home values actually fell in May compared to April. Home value growth slowed the most over April in a mix of the most expensive areas (San Francisco, San Jose, Los Angeles and Seattle), formerly fast-growing markets (Phoenix, Columbus and Indianapolis) and metros in states with a relatively high number of COVID-19 cases (Detroit and Pittsburgh).

Read More

Related Stories

Remodeling

Aging in Place: My Aunt Nancy’s New ADU

An apartment addition for an accessory dwelling unit to allow a family member to age in place presents several challenges and lessons learned for both the homeowners and contractor alike

Housing Markets

Average Homebuyer Income Increased Considerably in 'Pandemic Boomtowns'

Remote workers moving to Boise, for example, have raised the average annual income of homebuyers by 24%, to $98,000

Housing Giants

What Now for Residential Construction? The Housing Industry Post-Pandemic

The COVID-19 pandemic is essentially over, but the disruption to the housing industry that lies in its wake will be felt for years to come

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category



Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.