Track regional home appreciation levels with the national rate | news / arlington
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The Washington area’s year-over-year home value appreciation rate closely tracks that of its national counterpart, new data shows.
With a typical home value of $ 498,649, the DC area was up 11.5% in April from a year earlier, according to new figures from Zillow.
This business uses its own listings and other data to compile average home values for major metropolitan areas. While they don’t exactly follow similar data compiled by groups like the National Association of Realtors, all of these analyzes have highlighted home values in the region and country over the past year.
And despite not unreasonable public concerns – Google’s searches for the ‘housing bubble’ have grown exponentially in recent months – Zillow economist Jeff Tucker said the market was not likely to overheat, like this. happened almost 20 years ago.
“These two hot markets have seen extreme price appreciation in a relatively short period of time. But that’s where the similarities end, ”Tucker said.
“Unlike the combination of speculators and people spending beyond their means with non-traditional loans in 2004 and 2005, today’s home buying demand is driven by well-qualified buyers who engage. in traditional fixed rate mortgages, ”he said. “Builders are pulling all cylinders to meet excess demand caused by low mortgage rates and millions of millennial buyers fighting for limited homes.”
(However, the new home segment of the market has encountered hurdles due to rising material costs and what will likely be more regulatory hurdles imposed by a Democratic presidential administration and Congress. Homebuilders recently lambasted the Biden administration for offering higher tariffs on Canadian lumber at a time when lumber prices were skyrocketing.)
This spring, homes continue to sell at an all time high despite huge jumps in home values. Nationally, it typically only takes seven days after listing for a seller to accept an offer, while the Midwestern markets of Kansas City, Columbus, and Cincinnati see ads disappear in just three days on average.
The Sun Belt and Mountain West markets lead all major (50 largest) subways in terms of annual appreciation, most notably Austin (up 25.5% to $ 441,931) and Phoenix (up 20 , 4% to $ 355,822). Just behind was Salt Lake City, up 18.3%. Taking into account the 100 largest subways, the highest year-over-year price appreciation was found in Boise, at 32.5%. Zillow economists expect another year of home value appreciation, forecasting 11.8% growth through April 2022.
All the growth has been racing for people like first-time home buyer Tiauna Hansen and her fiance, Tyler Hensley, who estimate they made offers on 15 homes before finally closing a two-bedroom, one-bathroom home. bath near Boise in April.
The young couple were under contract to buy another home when the appraisal came down below the offer price and the deal broke down.
“We were so excited to buy our own house,” says Hansen. “We had already planned to expand this house and build a workshop, and then start our research again. But this experience ultimately left us more determined and led us to the house we are in now, which is perfect for us.
The couple used an FHA loan and down payment help to buy their new home at the asking price and can now look to their wedding in September.
Their story will resonate with thousands of struggling buyers in today’s market, but despite many stories of bidding wars, not all homes are selling to top the list.
Of all home sales that closed in February (last month with full data), 28.6% sold above their original list price. That’s more than double the share sold above the list in February of last year, but it still means the remaining 71.4 percent were sold at or below list price.
More than half of homes selling above list price nationwide were found in four subways: San Francisco and San Jose (the only two communities among the 50 largest where Zillow home values exceed 1 million. dollars) with Seattle and Salt Lake City.
The subways with the lowest share of homes sold above list price are Miami (11%), Orlando (13%) and Las Vegas (15%).