Market is nearing normalcy in third quarter, Zillow finds

According to Zillow, beginning in May of this year, annual appreciation has been slower in each month than the month prior, and home values grew at a 6.5 percent annual rate in September.

Zillow describes this slower appreciation rate as a “slow glide path down to more normal, sustainable levels.” Zillow attributes the unhealthy, rapid home value growth during the immediate post-bottom recovery phase to incredibly low mortgage interest rates, very low home values, and constrained inventory.

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