Are Surging Home Values Sustainable?

By Rhett Wilkinson Home values in the United States exploded during the last year, as interest rates and home inventories both hit record lows. Report after report is finding good news for home sellers, including: The Federal Housing Finance Agency’s Home Price index released last month revealed that prices were up an incredible 11 percent from Nov. 2019 to Nov. 2020. Home values swelled in December by 3.2 percent over the prior quarter. That’s the biggest jump in at least 25 years, a new Zillow report says. U.S. housing gained nearly $2.5 trillion in value in 2020 – the most in a single year since 2005, with the full stock of U.S. housing now worth $36.2 trillion, according to a new Zillow analysis.Homebuyer demand…

Home Values Grow “With An Exclamation Point”

Fueled by record-low interest rates and scarce inventory, home value growth surged in December by 3.2 percent over the previous quarter – the largest increase in at least a quarter century, according to a new report released by Zillow. Typical home values in the U.S. climbed to $266,104 in December, up 8.4 percent from a year earlier – the highest annual increase since January 2014.  “The housing market ended 2020 with an exclamation point, as home values rose sharply near the end of the year at their fastest quarterly rate on record,” said Jeff Tucker, senior economist at Zillow. “Sales are taking place at a rapid clip as momentum gathering in the market since June is still pushing forward at…

Report: Home Values May Fall Over Next Few Months

Home values may fall in the second half of the year as the housing market and economy as a whole cope with the fallout from the COVID-19 pandemic, accouding to a report released by Zillow on Thursday. According to the Zillow Home Value Index, the typical home value in the United States is $251,598, up 4.3 percent from last year – a small acceleration from April’s 4.2 percent year over year. But by more recent measures the growth rate has begun to slow.  In April, home values grew 0.41 percent month over month and slowed to 0.35 percent in May, the biggest one-month slowdown in more than a year – and “a possible indicator that the market is headed for…