US house prices jumped 7 per cent in 2016, according to Zillow. Home values rose 6.8 per cent year-on-year in December 2016, the fastest growth rate of 2016. That growth took the median property value to $193,800 – just below the highest value set in April 2007.
Home value appreciation slowed slightly in Portland, but remains the fastest in the nation, up 13.8 per cent from last December. Tampa, Seattle and Dallas saw similarly high home value growth, with home values growing nearly 12 per cent from a year ago.
Indeed, hot home values defined 2016’s housing market in the US, although as the new year begins, Zillow predicts that flattening rents could take the heat off buyers, who are struggling to find a home amid low inventory and give them more time to search for the right home.
“Home values ended 2016 growing at their fastest pace of the year, which could be an indication of what to expect in 2017,” says Zillow Chief Economist Dr. Svenja Gudell. “Lack of inventory will remain a major concern for home buyers this year. Especially lack of available entry-level homes coupled with high demand will continue to rapidly drive up home values in the near future. Buyers should make sure they get pre-approved for a mortgage, and be prepared to move quickly, especially in hot markets like Seattle and Portland. It’s not uncommon for buyers to make at least two offers during their home search.”
US housing worth record $29.6 trillion
4th January 2016
The total value of US housing is now a record $29.6 trillion, after another strong year of capital growth.
Analysis by Zillow shows that the USA’s housing market enjoyed a 5.7 per cent rise in worth in 2016, the equivalent of $1.6 trillion of added value. Indeed, the country’s property market has now regained all the value lost during the housing crisis, when homes lost a cumulative $6.4 trillion between the years of 2006 and 2012.
As of the end of 2016. the US GDP is an estimated $18.7 trillion, nearly $10 trillion less than the value of all homes in the country.
Los Angeles and New York metros hold the highest shares of the country’s overall housing value, at 8.6 per cent and 8 per cent, respectively. The next most valuable metro is San Francisco, worth 4.2 per cent of the overall housing value.
While several markets are now more valuable than they were at the height of the housing bubble, about 60 per cent of the markets in the US are still below the maximum values reached during the bubble years. For example, Chicago is still about $134 billion below the highest value it reached in 2006.
“Housing is incredibly important to us personally and to the economy as a whole,” says Zillow Chief Economist Dr. Svenja Gudell. “The US housing stock is worth more than ever, which is a sign of the ongoing housing recovery. As buying a home gets more expensive, affordability remains a concern for many, and these numbers highlight just how much people are spending on housing. The total value of the housing stock grew nearly 6 percent this year, a pace that will likely mean some American families are priced out of homeownership.”Google+