Zillow: Housing market cools — but it's still hot
Sep 17, 2021
Runaway monthly increases in home values and rents tempered in August, according to the latest Zillow market report, paving the way for a strong but more manageable housing market come fall, the company said.
Another month of rising inventory and more for-sale listings taking price cuts are giving buyers more options and potentially less stress as they shop for their next home.
Home value appreciation had been accelerating on a monthly basis since January but finally eased off the throttle, moderating from 1.97% month-over-month growth in July down to 1.75% growth in August.
While this will be good news for buyers looking for any signs of relief, it still represents the third-largest monthly growth in Zillow records.
"The strong recovery of inventory and initial lift off the gas pedal for home value appreciation is indicative of balance returning to the market," said Nicole Bachaud, economic data analyst at Zillow. "But, the major demand drivers that have pushed the market to extremes this year are still present — we're moving from a white-hot midsummer to somewhere closer to red hot as we head into the fall."
Home values are up a record-breaking 17.7% ($45,557) from a year ago, bringing the typical U.S. home value to $303,288.
Available housing inventory continued to rise for the fourth straight month, growing 4.1% over July and cutting the annual deficit to 22.7%, up from a low of -33% year over year low in April.
The share of listings with a price cut rose for the fourth consecutive month, further evidence of a market returning to balance. The share of listings with a price cut grew 1.9% in August, with a total of 12.3% of listings in the U.S. seeing a price reduction before an offer is accepted.
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