US Real Estate Report

US Real Estate Report

Homes are selling an average of a week faster than they did a year ago, meaning home shoppers should be prepared to move quickly in a competitive housing market, according to the June Zillow® Real Estate Market Reportsi.

Tight inventory continues to be a major factor for home shoppers. The supply of homes for sale is nearly 5 percent lower than it was a year ago, and 38 percent lower than its peak level in 2011. With fewer available options, home shoppers are moving quickly to buy homes, with the average U.S. home closing after 78 days on the market.

The 78-day average includes the time it takes to close, which is usually one or two months after the home goes under contract. This means that homes are pending within about a month of being listed.

The length of time homes stay on the market before selling has been steadily decreasing since 2010, when homes took an average of five months to sell. The average time home buyers had in Pittsburgh, Philadelphia and Charlotte, N.C. dropped by at least two weeks, the biggest change among the largest U.S. metros.

The low inventory and quick-moving market combine to create a competitive home shopping market, especially for potential buyers looking for less expensive homes. The most expensive third of the market has experienced the smallest drop in available inventory compared to the rest of the market.

“Homes are selling faster than ever as the home shopping season hits its peak,” said Zillow Chief Economist Dr. Svenja Gudell. “If you’re looking for a home, be prepared to move quickly. Adding to this difficult buying environment is low inventory – there simply aren’t many homes to choose from. And while this looks like a good time to be a seller, potential move-up buyers may hesitate to list their homes and become buyers. Until the supply increases, it will remain a tough market to find a home.”

Tips for buyers in a competitive market

  • Meet with your lender early and get preapproved for a loan – even before you begin seriously shopping for your new home.
  • Work with an agent who has expertise in the local market. Read reviews on local agents and find someone with a successful record in a tough market.
  • Request to pre-inspect a home before submitting an offer. You risk losing a few hundred dollars if you end up not wanting the house; but if you do, you’ll be able to submit an offer not contingent on home inspections.

The limited supply of homes is driving home values higher. The average U.S. home is worth $187,000, a 5.4 percent increase from June 2015. Home values have been increasing at 5 percent or faster on an annual basis for the past eight months.

Rents are growing at the slowest pace in nearly two years, up 2.6 percent to a Zillow Rent Indexii of $1,409.

Metropolitan Area

Median Days on Market

1-Year Change in Days on Market

1-Year Inventory Change (%)

June Zillow Home Value Indexiii

United States

78

-8

-4.7%

$187,000

New York/Northern New Jersey

157

-6

-9.2%

$386,800

Los Angeles-Long Beach-Anaheim, CA

64

0

-7.6%

$572,400

Chicago, IL

97

-6

-13.3%

$198,200

Dallas-Fort Worth, TX

56

6

-20.5%

$189,500

Philadelphia, PA

98

-15

-10.2%

$208,500

Houston, TX

70

1

4.4%

$172,900

Washington, DC

68

-5

-12.1%

$368,700

Miami-Fort Lauderdale, FL

103

5

13.5%

$235,500

Atlanta, GA

76

-6

-6.4%

$166,700

Boston, MA

71

-2

-23.2%

$394,400

San Francisco, CA

43

1

4.4%

$812,300

Detroit, MI

84

-9

-16.5%

$127,300

Riverside, CA

77

-3

-6.5%

$309,400

Phoenix, AZ

70

0

8.9%

$221,400

Seattle, WA

47

-3

-15.0%

$392,000

Minneapolis-St Paul, MN

75

-5

-0.9%

$227,400

San Diego, CA

61

-4

10.3%

$512,900

St. Louis, MO

74

-4

-13.3%

$142,500

Tampa, FL

78

-10

-8.9%

$167,700

Baltimore, MD

99

-7

-11.6%

$251,400

Denver, CO

52

0

4.4%

$338,500

Pittsburgh, PA

97

-15

2.1%

$130,400

Portland, OR

51

-4

-23.7%

$330,800

Charlotte, NC

70

-15

-11.5%

$162,300

Sacramento, CA

55

-4

-13.7%

$341,900

San Antonio, TX

69

-4

20.4%

$152,300

Orlando, FL

81

-7

-12.3%

$186,400

Cincinnati, OH

83

-8

-20.4%

$143,800

Cleveland, OH

93

-1

-20.2%

$128,500

Kansas City, MO

70

-5

-26.1%

$149,100

Las Vegas, NV

73

1

13.8%

$203,800

Columbus, OH

74

-3

-14.4%

$156,000

Indianapolis, IN

85

-11

-22.2%

$130,200

San Jose, CA

43

4

15.2%

$957,900

Austin, TX

57

-1

1.1%

$252,900

 

Zillow
Zillow® is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow’s Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ: Z and ZG), and headquartered in Seattle.

Zillow is a registered trademark of Zillow, Inc.

i The Zillow Real Estate Market Reports are a monthly overview of the national and local real estate markets. The reports are compiled by Zillow Real Estate Research. For more information, visit www.zillow.com/research/. The data in Zillow’s Real Estate Market Reports are aggregated from public sources by a number of data providers for 928 metropolitan and micropolitan areas dating back to 1996. Mortgage and home loan data are typically recorded in each county and publicly available through a county recorder’s office. All current monthly data at the national, state, metro, city, ZIP code and neighborhood level can be accessed at www.zillow.com/local-info/ and www.zillow.com/research/data.
ii The Zillow Rent Index (ZRI) is the median Rent Zestimate® (estimated monthly rental price) for a given geographic area on a given day, and includes the value of all single-family residences, condominiums, cooperatives and apartments in Zillow’s database, regardless of whether they are currently listed for rent. It is expressed in dollars.
iii The Zillow Home Value Index (ZHVI) is the median estimated home value for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. It is expressed in dollars, and seasonally adjusted.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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