Home value growth continued to slow in July for the seventh straight month, normalizing after years of rapid increase, Zillow reports.
The typical U.S. home was worth $229,000 in July, up 5.2% from a year ago – the slowest annual appreciation recorded in any month since October 2015. In the same month last year, home values rose 7.7% year-over-year. Despite the slowdown, home values are still showing healthy growth after a brief stall earlier in the year. Monthly home value growth flatlined in both April and May, but bounced back to 0.3% in both June and July – exactly in line with long-term monthly averages.
Ultimately, this ongoing slowdown is a good sign that the market is adjusting in response to the growing difficulty of saving for a down payment as prices rise. And for those with adequate savings, low mortgage rates are helping keep them interested in homeownership, despite the potential for softer appreciation in their investment during the first few years of ownership.
There were 1,575,892 U.S. homes listed for sale in July (seasonally adjusted), up 1.3% from a year ago. This modest annual increase breaks a stretch of four consecutive months in which inventory fell year-over-year. Inventory was also up year-over-year in 30 of the nation’s 50 largest markets. For-sale inventory grew the most from a year ago in Las Vegas (up 53.5% year-over-year), San Jose (32.6%) and Denver (26.9%).