Total inventory, while still rising quickly, remains 43.5% below July 2019, leading Zillow economists to predict that home prices will not drop significantly. This new inventory figure does not include new construction, so it represents current homeowners deciding not to list their homes, the company said. Compared to July 2019, 15.5% fewer new listings came on the market. Inventory is up 5.1% on a monthly basis, yet new inventory fell 13.6% month over month in July. Homes lingering on the market are also driving for-sale inventory up at a fast clip. A wide swath of sellers are adjusting pricing to meet buyers' expectations, as the share of listings with a price cut grew to 18.6% in July, a few percentage points higher than in July 2019. The company's analysts said potential homebuyers have a better chance of seeing price cuts as listings' median days to pending jumped by two days in July to 10 - still nearly two weeks less than in July 2019.Īmong major metros, typical time on market is rising fastest in Austin, Phoenix, and San Jose.
(0.9%), although monthly growth has decelerated in these markets, according to Zillow. Values rose the most since June in Miami (1.5%), Richmond, Va. The digital realtor’s home value index shows largest monthly home value declines were in California, in San Jose (-4.5%) and San Francisco (-2.8%) - the nation's most expensive major markets - followed by Phoenix (-2.8%), and Austin, Texas (-2.7%), which saw the most extreme growth over the pandemic. Home values measured by the company fell from June to July in 30 of the 50 largest metro areas, an increase from 13 the previous month. As prices soften, many will renew their interest, and we will continue our progress back to 'normal.' With buyers ready in the wings once confidence returns, homeowners can expect to keep the majority of the equity gains they've seen in the last two years."Īccording to Zillow's latest market report, home prices now stand at an average of $357,107. "This slowdown is about discouraged buyers pulling back after the affordability shock from higher rates. "Home values flattening so quickly after recent record growth might surprise, but it's a badly needed rebalancing that gives home buyers more options, more time to shop, and more negotiating power," said Zillow Chief Economist Skylar Olsen. A Zillow economist says that while the drop is surprising, it points to a much-needed rebalancing in the housing market.Īccording to Zillow, the nation's typical home value is up 16% year over year and 44.5% since July 2019, but the slight drop in July will give potential buyers time and options as the housing market rebalances. home value dipped 0.1% in July, the first monthly decline in a decade. KTAR News 92.3 FM’s Luke Forstner contributed to this report.The average U.S. And so, once those prices get to a point they can afford, all of a sudden you’re going to get people buying and you’re going to have the prices kind of going back up and having that pressure again.”ĬORRECTION: An earlier version of this story incorrectly said Phoenix-area housing values dropped by $1,400 from June to July. “But overall, new inventory is not coming into the market, and we have all of these people who want to buy. “The reason we’re seeing inventory increase right now is because … people aren’t buying homes, so homes are not selling and they’re staying on the market longer. “Inventory is still overall very low,” she said.
However, Bachaud said analysts don’t expect current homeowners to lose much, if any, of the value gained in recent years. “And so, for people who are trying to buy who can afford to stay in this market, they have a bit of an easier time than they’ve had at any point in the past several years.” You have less competition from other buyers,” Bachaud said. Zillow’s report shows that Valley inventory increased by 11.3% from June to July and prices were reduced on 28.8% of homes listed. The shift should make things easier for potential homebuyers who can afford to get into the market.
“And so, that’s what we’re seeing right now, is kind of that leveling off.” … We’ve had a really fast market and we’re trying to rebalance and get back to normal,” Bachaud said. “Even just this year alone, home values are up 8% in Phoenix. And the typical mortgage payment has doubled in that time because of higher prices and interest rates. “It’s important to keep in mind the context of how much homes have appreciated over the last two or three years,” she said.Įven with the July dip, Phoenix-area homes are still worth nearly 70% more than they were in July 2019, according to Zillow. Maricopa County earmarks $3.1M to build 200-plus affordable housing units in south Phoenix
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