Housing Market Continues to Cool as the Year Winds Down

According to the latest U.S. Zillow Home Value Index (ZHVI) report, the quieting that started in housing market in late summer has rolled over into the early fall. Prospective buyers are finding slightly more selection, an increase in price cuts, and a bit more time to evaluate a home before it goes under contract.

The ZHVI for the U.S. rose to $308,220 in September, up 1.6% from August 2021, marking the second straight slowdown after monthly appreciation peaked this year at 2% in July 2021.

In comments prepared for the release of the ZHVI, Jeff Tucker, Senior Economist at Zillow said, “The housing market continued its gradual return to some semblance of normalcy in September, helped by the typical seasonal cooldown in shopping conditions that we expect to see every fall. Homes are still selling quickly and prices have not receded, but it’s not quite as extreme a sellers’ market as we saw back in the spring and summer. Buyers today will benefit from a little more time to pick the right home and a few more listings to choose from.”