SEATTLE, Jan. 20, 2022 /PRNewswire/ -- The home
shopping season appears to already be in full swing, as anxious
buyers outnumbered dwindling new listings and drove inventory to
record low levels in December. Limited supply is already pushing
price growth up, as Zillow®'s latest market
report1 shows monthly home value appreciation
accelerated for the first time since July.
In addition to not wanting to wade into such a tight market as a
buyer, homeowners could be hesitant to list their houses and move
due to a resurgence in coronavirus cases and employers' rising
uncertainty about post-pandemic working arrangements, according to
a recent Zillow survey.
"Home shoppers picked the shelves clean this December, leaving
fewer active listings than ever before in the U.S. housing market,"
said Jeff Tucker, senior economist
at Zillow. "Enough determined buyers kept up their house hunt to
reignite monthly price appreciation. Rising mortgage rates could be
the next potential headwind, but demand has proven persistent;
neither high prices nor slim inventories have deterred buyers so
far."
The typical home value is now $320,662, 19.6% above that of December 2020. The annual growth rate represents
an all-time high in data dating back more than 20 years. After
decelerating since July, month-over-month home value appreciation
reignited, jumping from 1.2% in November to 1.4% in December.
The resurgent upward pressure on prices is likely due to
astonishingly low levels of inventory this winter. After slipping
in November, inventory plunged in December, dropping 11.1% in a
month to a new record low of about 923,000 homes. Buyers shopping
in December had 19.5% fewer homes to choose from than they did a
year before, when inventory was already at a record low. Compared
to December 2019, there are now 40.5%
fewer homes available for sale.
One bright point for buyers is that the speed of the market has
gradually slowed since the frenzied summer. In June, the typical
U.S. home spent just one week on the market before going under
contract. That has risen every month since, to roughly 13 days in
December. This is still an incredibly short time on the market, but
those extra few days do give buyers more time to assess their
options.
Surge in coronavirus cases could be hampering listings, plans
to move
While December typically sees a sharp decline in
newly listed inventory, the 18.9% monthly drop seen last month was
the largest in the past three years. The rise of the omicron
variant of coronavirus could be partially responsible, pushing
homeowners to wait for infection rates to subside before
listing.
Workers are also less certain about their long-term working
arrangements, which could impact their plans to move. A December
survey2 conducted by Zillow found that 52% of workers
reported that their employer had announced post-pandemic work
arrangements — a lower share than was reported in June 2021. One possible explanation is that the
rise of new coronavirus variants has caused employers to push back
in-person start dates indefinitely.
Workers whose employer has announced post-pandemic work
arrangements are more likely to say they are considering a move
within the next three years: 51%, versus 41% for those whose
employers have not lined out a plan.
Rent growth slows
Typical rents rose a record 15.7%
year over year in December, to $1,855
per month. However, monthly growth was 0.7% in December, the lowest
monthly growth seen since February.
Rents grew year over year in all 50 of the nation's largest
metros. Annual rent appreciation was fastest across the Sunbelt,
led by Miami (29.6%), Tampa (28.6%), Phoenix (26.0%) and Las Vegas (25.1%).
Metropolitan
Area*
|
Zillow
Home
Value Index
(ZHVI)
|
ZHVI –
Year-
over-
Year
Change
|
ZHVI –
Month-
over-
Month
Change
|
For-Sale
Inventory
Year-over-
Year
Change
|
Median
Days to
Pending
|
Zillow
Observed
Rent Index
(ZORI)
|
ZORI –
Year- over- Year
Change
|
United
States
|
$320,662
|
19.6%
|
1.4%
|
-19.5%
|
13
|
$1,855
|
15.7%
|
New York,
NY
|
$573,813
|
12.5%
|
0.6%
|
-25.4%
|
37
|
$2,772
|
16.2%
|
Los Angeles–
Long Beach– Anaheim, CA
|
$868,350
|
17.9%
|
1.1%
|
-29.7%
|
13
|
$2,747
|
13.4%
|
Chicago,
IL
|
$289,595
|
13.6%
|
0.9%
|
-22.8%
|
22
|
$1,735
|
10.4%
|
Dallas–Fort
Worth, TX
|
$344,919
|
25.2%
|
1.7%
|
-24.0%
|
17
|
$1,719
|
17.9%
|
Philadelphia,
PA
|
$313,529
|
14.7%
|
0.7%
|
-9.3%
|
13
|
$1,740
|
11.4%
|
Houston,
TX
|
$278,685
|
19.3%
|
1.2%
|
-17.5%
|
14
|
$1,519
|
11.9%
|
Washington,
D.C.
|
$526,296
|
11.9%
|
0.6%
|
-4.4%
|
12
|
$2,119
|
11.7%
|
Miami–Fort
Lauderdale, FL
|
$397,603
|
22.3%
|
1.9%
|
-48.0%
|
18
|
$2,564
|
29.6%
|
Atlanta,
GA
|
$338,243
|
27.4%
|
2.4%
|
-27.8%
|
10
|
$1,882
|
21.6%
|
Boston, MA
|
$612,114
|
14.3%
|
0.8%
|
-25.7%
|
10
|
$2,608
|
13.7%
|
San Francisco,
CA
|
$1,374,739
|
17.3%
|
0.8%
|
-21.6%
|
13
|
$3,044
|
10.4%
|
Detroit,
MI
|
$226,372
|
15.0%
|
0.7%
|
-4.8%
|
13
|
$1,384
|
11.0%
|
Riverside,
CA
|
$534,393
|
26.2%
|
0.9%
|
-7.1%
|
14
|
$2,469
|
18.1%
|
Phoenix,
AZ
|
$427,451
|
31.8%
|
1.4%
|
-9.5%
|
14
|
$1,858
|
26.0%
|
Seattle,
WA
|
$718,944
|
22.2%
|
1.6%
|
-22.9%
|
6
|
$2,132
|
17.3%
|
Minneapolis–St. Paul, MN
|
$353,505
|
12.6%
|
0.8%
|
-6.0%
|
21
|
$1,610
|
5.6%
|
San Diego,
CA
|
$834,199
|
23.6%
|
1.4%
|
-28.4%
|
9
|
$2,757
|
17.2%
|
St. Louis,
MO
|
$224,320
|
14.1%
|
1.0%
|
-23.5%
|
8
|
$1,210
|
10.9%
|
Tampa, FL
|
$327,618
|
29.7%
|
1.7%
|
-24.7%
|
7
|
$1,985
|
28.6%
|
Baltimore,
MD
|
$353,016
|
11.6%
|
0.6%
|
-9.6%
|
11
|
$1,793
|
12.1%
|
Denver, CO
|
$588,328
|
22.5%
|
1.6%
|
-40.3%
|
6
|
$1,873
|
14.8%
|
Pittsburgh,
PA
|
$201,584
|
15.4%
|
0.7%
|
-7.8%
|
23
|
$1,289
|
7.8%
|
Portland,
OR
|
$540,550
|
18.1%
|
0.9%
|
-14.7%
|
8
|
$1,810
|
12.8%
|
Charlotte,
NC
|
$336,085
|
26.9%
|
1.8%
|
-23.6%
|
6
|
$1,704
|
19.5%
|
Sacramento,
CA
|
$574,383
|
21.5%
|
0.6%
|
-30.5%
|
9
|
$2,195
|
13.0%
|
San Antonio,
TX
|
$277,236
|
21.9%
|
1.8%
|
-28.6%
|
12
|
$1,392
|
15.7%
|
Orlando,
FL
|
$340,123
|
23.5%
|
2.1%
|
-30.3%
|
8
|
$1,887
|
23.8%
|
Cincinnati,
OH
|
$240,833
|
16.0%
|
0.9%
|
-12.6%
|
6
|
$1,401
|
10.2%
|
Cleveland,
OH
|
$200,895
|
15.9%
|
0.7%
|
-33.5%
|
12
|
$1,209
|
9.7%
|
Kansas City,
MO
|
$264,395
|
18.2%
|
1.2%
|
-7.6%
|
5
|
$1,258
|
9.9%
|
Las Vegas,
NV
|
$395,943
|
26.8%
|
1.7%
|
-26.0%
|
10
|
$1,822
|
25.1%
|
Columbus,
OH
|
$271,956
|
16.4%
|
1.2%
|
-7.6%
|
5
|
$1,350
|
10.7%
|
Indianapolis,
IN
|
$244,052
|
19.3%
|
1.8%
|
-9.8%
|
5
|
$1,368
|
12.4%
|
San Jose,
CA
|
$1,536,201
|
17.2%
|
1.4%
|
-31.4%
|
14
|
$3,007
|
9.2%
|
Austin, TX
|
$545,850
|
44.6%
|
2.2%
|
14.6%
|
21
|
$1,782
|
24.4%
|
Virginia Beach,
VA
|
$301,273
|
14.7%
|
1.1%
|
-17.4%
|
22
|
$1,539
|
14.3%
|
Nashville,
TN
|
$393,938
|
27.1%
|
2.8%
|
|
7
|
$1,788
|
18.9%
|
Providence,
RI
|
$417,771
|
19.0%
|
1.0%
|
-31.6%
|
13
|
$1,739
|
12.6%
|
Milwaukee,
WI
|
$250,900
|
13.0%
|
0.2%
|
|
36
|
$1,217
|
7.3%
|
Jacksonville,
FL
|
$321,420
|
27.7%
|
2.1%
|
-21.9%
|
10
|
$1,718
|
24.0%
|
Memphis,
TN
|
$209,211
|
19.5%
|
1.6%
|
-1.2%
|
20
|
$1,468
|
16.4%
|
Oklahoma City,
OK
|
$198,154
|
15.7%
|
1.5%
|
-12.6%
|
7
|
$1,216
|
11.9%
|
Louisville–
Jefferson County, KY
|
$224,727
|
14.1%
|
1.1%
|
-3.7%
|
9
|
$1,183
|
9.0%
|
Hartford,
CT
|
$296,333
|
15.2%
|
0.6%
|
-32.9%
|
15
|
$1,583
|
10.5%
|
Richmond,
VA
|
$305,227
|
14.4%
|
1.2%
|
-15.6%
|
6
|
$1,518
|
14.7%
|
New Orleans,
LA
|
$254,376
|
14.4%
|
1.3%
|
-22.4%
|
9
|
$1,461
|
18.2%
|
Buffalo,
NY
|
$226,354
|
19.1%
|
0.4%
|
-11.0%
|
12
|
$1,085
|
10.2%
|
Raleigh,
NC
|
$399,332
|
30.7%
|
2.1%
|
-39.2%
|
5
|
$1,663
|
18.4%
|
Birmingham,
AL
|
$219,531
|
16.9%
|
1.6%
|
-25.7%
|
6
|
$1,285
|
10.7%
|
Salt Lake City,
UT
|
$553,658
|
27.6%
|
1.6%
|
-12.0%
|
8
|
$1,634
|
19.1%
|
|
*Table ordered by
market size
|
1 The Zillow Real Estate Market Report is a
monthly overview of the national and local real estate markets. The
reports are compiled by Zillow Research. For more information,
visit www.zillow.com/research. The data in the Zillow Real Estate
Market Report is aggregated from public sources by a number of data
providers for 928 metropolitan and micropolitan areas, dating back
to 2000. Mortgage and home loan data is 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 levels can be accessed at
www.zillow.com/research/data.
2 Zillow Group conducted a nationally
representative survey of U.S. adults in mid-December 2021 and asked 824 adults about
their plans to move, their view of current housing prices and their
anticipated work arrangements.
About Zillow Group
Zillow Group, Inc.
(NASDAQ: Z and ZG) is reimagining real estate to make it easier to
unlock life's next chapter. As the most visited real estate website
in the United States, Zillow® and
its affiliates offer customers an on-demand experience for selling,
buying, renting or financing with transparency and ease.
Zillow Group's affiliates and subsidiaries include Zillow®,
Zillow Offers®, Zillow Premier Agent®, Zillow Home Loans™, Zillow
Closing Services™, Zillow Homes, Inc., Trulia®, Out East®,
ShowingTime®, Bridge Interactive®, dotloop®, StreetEasy® and
HotPads®. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS
#10287 (www.nmlsconsumeraccess.org).
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SOURCE Zillow