by Francis Monfort
The typical U.S. home was worth $200,400 in June, the highest is has ever been and an increase of about 7.5% a year ago, according to a real estate market report from Zillow.
Increasing home values across the country were driven by high buyer demand and fewer homes on the market. June saw the greatest inventory slide since July 2013, with 11% fewer home for sale compared to a year ago.
Seattle, Dallas and Las Vegas saw the fastest increases in home values, with all cities posting double-digit gains over the same period a year ago. Home values rose 13% year-over-year in Seattle to a median figure of $447,100, while Dallas and Las Vegas saw 10.5% and 10% increases, respectively.
“The national housing market remains red-hot and shows no signs of slowing, even as some local markets like the Bay Area have noticeably cooled,” said Zillow chief economist Svenja Gudell. “But even in areas where the housing market has slowed, home values are at or very near peak levels, selection is limited, demand is high and competition is fierce.”
Meanwhile, median rent across the U.S. remained steady, posting an annual growth of just more than 1% to $1,422 per month. The biggest increases in annual rent among the 35 largest U.S. metros were seen in Seattle, Los Angeles, and Sacramento, California.
However, median rent fell in 12 of the 35 metros. Pittsburgh posted the biggest drop of 4%, followed by a 3% decrease in Houston.
Inventory levels fell the most in San Jose, Columbus, Ohio and San Diego compared to year-ago figures. The number fell almost 40% in San Hose, while Columbus and San Diego both posted declines at 33%.