SEATTLE, Feb. 17, 2022 /PRNewswire/ -- Home buyers face
another challenging shopping season to navigate, as Zillow®'s
latest monthly report1 reveals record-breaking low
inventory and unprecedented price growth.
The Zillow Home Value Index (ZHVI) rose 1.5% from December to
January to $325,677, up 19.9% from a
year ago. The annual growth rate represents an all-time high over
the last 20 years, and the monthly pace continued to accelerate
after reaching a low of 1.2% in November. If monthly price growth
were to hold steady at January's pace, annual growth in 2022 would
be 19%. Home values are up 30.9% — nearly $77,000 — since January
2020, on the eve of the pandemic.
"Home buyers today are making bids and closing deals despite
some of the most challenging conditions ever: record-few homes for
sale to choose from, priced at double-digit gains from last year,
financed at sharply rising mortgage rates," said Jeff Tucker, senior economist at Zillow. "It
remains to be seen how long buyers can weather this storm, and how
long homeowners will watch values rise before deciding to list.
Neither have blinked yet. Expect another sizzling hot spring
shopping season."
The rising heat in the market is widespread. Monthly home value
growth accelerated from December to January in 38 of the nation's
50 largest metropolitan areas. Among these, the fastest monthly
growth was in Nashville,
San Diego and Las Vegas, all at 2.5%. The slowest growth was
in Milwaukee, New York and Washington, D.C., all at 0.7%.
Inventory plunges to record lows
Home shoppers hoping for an injection of options and relief from
heightened competition after December's inventory drought instead
saw the biggest decline in at least three years. Active inventory
dropped 13% — the second straight double-digit monthly drop. Though
inventory typically dips in the winter, active inventory is now 22%
lower than a year ago, and 42.4% lower than January 2020.
A sharp cutback in new listings hitting the market — down 19%
from December — was the main cause. January's flow of new listings
was lower than any month since at least the beginning of 2019.
Sales of existing homes in January are expected to be somewhat
lower than in December and January
2021. But at a seasonally adjusted annual rate, sales are
starting the year roughly on par with full-year 2021 levels, which
was the best year for existing sales since 2006. New home sales
took a breather late last year as builders worked to complete the
backlog of orders they booked in 2020, when they sold the most new
homes in 14 years.
"If supply chains can untangle, builders should be able to
complete and sell more homes this year than last," Tucker said.
Rent growth slows to a crawl
Monthly rent growth slowed dramatically, falling from 0.9% in
November and December to a nearly flat 0.1% in January, the lowest
rate seen since October 2020.
Year-over-year rent growth was 15.9%, slightly lower than a
record-high 16% in December, making typical rent $1,856 per month.
Metropolitan
Area*
|
Zillow
Home
Value Index
(ZHVI)
|
ZHVI –
Year-
over-
Year
Change
|
ZHVI –
Month-
over-
Month
Change
|
For-Sale
Inventory
Year-over-
Year
Change
|
New For-
Sale
Inventory
Year-Over-
Year
Change
|
Zillow
Observed
Rent
Index
(ZORI)
|
ZORI –
Year-
over-
Year
Change
|
United
States
|
$325,677
|
19.9%
|
1.5%
|
-22.0%
|
-16.9%
|
$1,856
|
15.9%
|
New York,
NY
|
$577,647
|
12.2%
|
0.7%
|
-29.3%
|
-26.9%
|
$2,788
|
17.3%
|
Los
Angeles– Long Beach– Anaheim, CA
|
$878,396
|
18.5%
|
1.2%
|
-33.7%
|
-22.7%
|
$2,769
|
14.3%
|
Chicago,
IL
|
$292,436
|
14.0%
|
0.9%
|
-26.8%
|
-20.7%
|
$1,770
|
11.1%
|
Dallas–Fort Worth,
TX
|
$351,550
|
26.8%
|
2.2%
|
-21.7%
|
-17.6%
|
$1,704
|
18.3%
|
Philadelphia,
PA
|
$315,442
|
14.2%
|
0.8%
|
-11.4%
|
-13.2%
|
$1,725
|
11.3%
|
Houston,
TX
|
$282,014
|
19.6%
|
1.2%
|
-15.9%
|
-15.0%
|
$1,509
|
12.0%
|
Washington,
D.C.
|
$529,871
|
11.6%
|
0.7%
|
-12.6%
|
-21.1%
|
$2,117
|
11.7%
|
Miami–Fort
Lauderdale, FL
|
$404,601
|
23.5%
|
2.0%
|
-49.9%
|
-28.6%
|
$2,597
|
30.6%
|
Atlanta,
GA
|
$344,420
|
28.6%
|
2.2%
|
-28.6%
|
-19.2%
|
$1,866
|
20.9%
|
Boston, MA
|
$617,198
|
14.1%
|
0.9%
|
-31.0%
|
-25.5%
|
$2,701
|
13.2%
|
San Francisco,
CA
|
$1,391,474
|
18.3%
|
1.2%
|
-25.8%
|
-21.3%
|
$3,069
|
10.5%
|
Detroit,
MI
|
$229,141
|
14.9%
|
1.1%
|
-6.7%
|
-11.0%
|
$1,377
|
10.7%
|
Riverside,
CA
|
$544,220
|
26.7%
|
1.8%
|
-7.5%
|
-9.3%
|
$2,491
|
17.7%
|
Phoenix,
AZ
|
$434,184
|
30.7%
|
1.3%
|
-7.2%
|
-4.0%
|
$1,864
|
25.6%
|
Seattle,
WA
|
$733,604
|
23.1%
|
1.9%
|
-29.4%
|
-41.9%
|
$2,133
|
16.9%
|
Minneapolis–St. Paul,
MN
|
$357,512
|
12.3%
|
0.8%
|
-6.5%
|
-18.1%
|
$1,585
|
5.9%
|
San Diego,
CA
|
$857,991
|
24.9%
|
2.5%
|
-29.0%
|
-17.9%
|
$2,788
|
17.1%
|
St. Louis,
MO
|
$226,743
|
14.4%
|
1.2%
|
-25.3%
|
-16.5%
|
$1,199
|
10.4%
|
Tampa, FL
|
$334,537
|
30.5%
|
2.4%
|
-26.2%
|
-9.1%
|
$1,975
|
28.2%
|
Baltimore,
MD
|
$356,266
|
11.6%
|
0.8%
|
-10.6%
|
-12.2%
|
$1,782
|
12.2%
|
Denver, CO
|
$598,233
|
23.0%
|
1.7%
|
-37.7%
|
-19.3%
|
$1,875
|
15.0%
|
Pittsburgh,
PA
|
$203,384
|
15.1%
|
0.9%
|
-8.1%
|
-5.4%
|
$1,318
|
7.8%
|
Portland,
OR
|
$547,041
|
18.3%
|
1.2%
|
-17.5%
|
-18.1%
|
$1,799
|
12.2%
|
Charlotte,
NC
|
$344,238
|
27.7%
|
2.1%
|
-16.1%
|
-19.2%
|
$1,705
|
19.1%
|
Sacramento,
CA
|
$583,329
|
21.8%
|
1.4%
|
-38.1%
|
-41.3%
|
$2,188
|
11.7%
|
San Antonio,
TX
|
$309,475
|
23.1%
|
1.8%
|
-20.2%
|
-13.9%
|
$1,389
|
15.7%
|
Orlando,
FL
|
$346,877
|
24.9%
|
2.1%
|
-32.1%
|
-9.1%
|
$1,885
|
23.4%
|
Cincinnati,
OH
|
$242,958
|
15.7%
|
1.0%
|
-11.6%
|
-15.9%
|
$1,391
|
9.8%
|
Cleveland,
OH
|
$202,044
|
15.7%
|
0.9%
|
-35.7%
|
-22.8%
|
$1,244
|
9.0%
|
Kansas City,
MO
|
$267,621
|
18.3%
|
1.3%
|
-9.3%
|
-18.2%
|
$1,253
|
10.0%
|
Las Vegas,
NV
|
$405,542
|
28.5%
|
2.5%
|
-26.0%
|
-4.6%
|
$1,819
|
24.8%
|
Columbus,
OH
|
$275,240
|
16.2%
|
1.2%
|
-8.0%
|
-12.5%
|
$1,374
|
10.5%
|
Indianapolis,
IN
|
$249,065
|
20.0%
|
1.9%
|
-7.3%
|
-5.7%
|
$1,366
|
12.2%
|
San Jose,
CA
|
$1,578,375
|
18.6%
|
1.8%
|
-37.3%
|
-22.2%
|
$3,031
|
10.3%
|
Austin, TX
|
$558,699
|
45.8%
|
2.3%
|
18.7%
|
-25.5%
|
$1,805
|
22.7%
|
Virginia Beach,
VA
|
$305,036
|
15.1%
|
1.2%
|
-22.2%
|
-25.8%
|
$1,518
|
12.9%
|
Nashville,
TN
|
$403,333
|
28.9%
|
2.5%
|
|
-34.4%
|
$1,757
|
19.5%
|
Providence,
RI
|
$421,969
|
18.3%
|
1.0%
|
-36.7%
|
-22.1%
|
$1,779
|
14.0%
|
Milwaukee,
WI
|
$252,346
|
12.1%
|
0.7%
|
|
-17.5%
|
$1,231
|
8.1%
|
Jacksonville,
FL
|
$327,636
|
28.8%
|
2.3%
|
-21.9%
|
-11.1%
|
$1,718
|
23.0%
|
Memphis,
TN
|
$212,725
|
19.7%
|
1.5%
|
-1.2%
|
-8.0%
|
$1,465
|
15.1%
|
Oklahoma City,
OK
|
$201,016
|
16.6%
|
1.5%
|
-4.2%
|
-14.7%
|
$1,240
|
12.1%
|
Louisville–Jefferson
County, KY
|
$227,188
|
14.2%
|
1.0%
|
-5.2%
|
-15.3%
|
$1,175
|
9.9%
|
Hartford,
CT
|
$299,964
|
15.1%
|
1.0%
|
-37.3%
|
-23.8%
|
$1,532
|
8.4%
|
Richmond,
VA
|
$309,300
|
14.3%
|
1.3%
|
-18.8%
|
-24.1%
|
$1,493
|
13.0%
|
New Orleans,
LA
|
$255,960
|
14.2%
|
1.0%
|
-24.5%
|
-15.9%
|
$1,426
|
16.0%
|
Buffalo,
NY
|
$227,420
|
18.4%
|
0.8%
|
-13.2%
|
-10.7%
|
$1,096
|
8.3%
|
Raleigh,
NC
|
$410,121
|
31.7%
|
2.2%
|
-37.2%
|
-25.2%
|
$1,648
|
18.4%
|
Birmingham,
AL
|
$222,928
|
17.1%
|
1.3%
|
-25.7%
|
-22.6%
|
$1,268
|
11.0%
|
Salt Lake City,
UT
|
$560,944
|
27.6%
|
1.5%
|
-19.5%
|
-27.6%
|
$1,645
|
19.4%
|
*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.
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®,
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HotPads®. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS
#10287 (www.nmlsconsumeraccess.org).
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