Home Value Appreciation Slows for Third Consecutive Month in October

Home value appreciation slowed for the third consecutive month in October 2021, according to Zillow’s latest Home Value Index (ZHVI). However, home values rose 1.3% above September, slower than the all-time high monthly appreciation of 2% in July 2021.

Zillow has found that the typical home value in the U.S. is now up to $312,728. Annual growth of 19.2% ($50,405) is the highest in Zillow data, reaching back to 2000. Home values did not drop in any of the 50 largest U.S. metros polled by Zillow, but monthly home value growth decelerated in 42 of them.

Median home list prices have fallen since July, and the share of homes that saw a price cut before selling rose slightly over September as well, now standing at 14.7% — nearly double the year’s low point in April. The most recent data on the share of homes that sold above list price shows a monthly decline of 6.6% in September to 47.2%, down from a peak of 51.3% in July.

In remarks prepared for the October ZHVI, Jeff Tucker, Zillow’s Senior Economist said, “Home buyers shopping this fall shouldn’t expect the same frenzied demand that triggered bidding wars on listings this spring and summer. The normal seasonal slowdown of autumn has returned when many families are busy with back-to-school activities and planning for the holidays. Buyers can expect less competition, meaning more time to decide on a house and the potential for prices to fall.”

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Original Source:
Home Buying Competition Begins to Ease