Home values hit their stride in December, clocking in at the fastest annual pace of 2016 at 6.8 percent, according to the December Zillow Real Estate Market Reports. Portland, Ore., home values hung onto the top spot, appreciating 13.8 percent year-over-year.
“Home values ended 2016 growing at their fastest pace of the year, which could be an indication of what to expect in 2017,” says Zillow Chief Economist Dr. Svenja Gudell. “Lack of inventory will remain a major concern for homebuyers this year…lack of available entry-level homes, coupled with high demand, will continue to rapidly drive up home values in the near future. Buyers should make sure they get pre-approved for a mortgage, and be prepared to move quickly, especially in hot markets like Seattle and Portland. It’s not uncommon for buyers to make at least two offers during their home search.”
Dallas, Texas, Tampa, Fla., and Seattle, Wash., home values grew approximately 12 percent year-over-year, according to the Reports. The Zillow Home Value Index (ZHVI) is now $193,800, closing in on the highest value since April 2007.
Annual rent growth in December was 1.5 percent—a slower pace compared to the previous year. Seattle rents appreciated the most at 8.4 percent. The median national rent is now $1,403.
Inventory, according to the Reports, continues to decline, with inventory in Boston, Mass., and Minneapolis, Minn., falling the most in 2016.
For more information, please visit www.zillow.com.
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