Tag Archives: dallas
Lack of homes for sale hampering buyers in the United States
A lack of homes for sale across the United States continues to limit choices available to potential buyers, putting a strain on markets across the country, new research reveals. In January buyers had 8.6% homes to choose from than they did last year, according to the latest real estate market report from property firm Zillow. It also shows that housing starts reached a three month low in January, indicating that newly built homes will not be a significant benefit for buyers, either. The firm says that a restricted supply of homes for sale will mean increased competition for homes that are available, and bidding wars that can price out entry level or first time buyers. Low inventory, along with a strong job market has been driving up home prices, especially on the West Coast. Across the country, only a quarter of markets saw inventory increase over the past year. Among the largest metros in the country Atlanta saw the largest increase in available homes for sale at 6.8% while buyers in San Diego have significantly fewer options with inventory down 30%. Besides inventory, Zillow looks at price cuts and days on market to help identify whether markets are better for buyers or sellers. It found that markets that benefit sellers are mostly grouped in the West, where buyers are more likely to face bidding wars. Buyers will find themselves with more bargaining power in the East, in markets like Philadelphia and Baltimore. ‘If you're looking for a home or trying to sell, it's important to know what kind of market you're in. Hopeful buyers in a strong sellers' market should be prepared to move quickly, since homes don't stay on the market as long,’ said Zillow chief economist Svenja Gudell. ‘In a buyers' market, they can afford to take their time and be more selective. However, low inventory is a factor affecting the majority of the country, so buyers should be prepared for a limited selection as we enter the home buying season,’ she explained. National home values rose 4.2o % $184,000, according to the Zillow data meaning that the pace of home value appreciation has increased for 10 months in a row. Denver and Dallas continue to lead the way, with strong double digit increases in home values. Rents, on the other hand, continued their recent trend of levelling off, growing 2.9% year on year from January 2015. San Francisco was the only large metro to see double digit rent increases. Continue reading
Some home markets in the US are still struggling to recover, latest index suggests
More than a quarter of homes across the United States lost value over the past year, despite the ongoing housing market recovery, according to the latest real estate market report. Some markets have already surpassed home values reached at the height of the housing bubble, while other markets are struggling to leave the recession behind, the analysis from real estate firm Zillow shows. Nationally, homes appreciated 3.3% from a year ago, rising to a Zillow Home Value Index of $180,800. However, the national growth rate has levelled off over the past five months, suggesting the housing recovery is ending and the market is returning to normal. Overall some 27.9% of homes lost value over the past year. Before the housing market crashed, an average of 21.2% of homes were losing value and in December 2008 some 81.6% of homes lost value, the highest amount during the recession. Markets on the East Coast and in the Midwest had the highest share of homes that lost value, led by 48.1% of homes in Baltimore which saw prices fall over the past year. Philadelphia with 43.4% and Washington DC at 41.2% also had large shares of homes losing value. Conversely, few homes lost value in hot markets like Denver, Dallas, San Jose, and San Francisco, which all saw double digit home value growth over the past year. Just 1.5% of homes in Denver and 4% in Dallas were worth less in August 2015 than they were a year ago. ‘We're not going in reverse, but we are hitting the brakes a bit in some markets. It's easy to say the recession is over when a third of the biggest markets are more expensive now than ever before, but we're still seeing a number of homes losing value. The reality is there are still areas lagging behind in the recovery,’ said Zillow chief economist Svenja Gudell The report suggests that renters looking to become home owners may find more opportunities in slower markets like Philadelphia. According to the January 2015 Zillow Housing Confidence Index when home values there were growing at 2.8% annually, eight percent of renters in the area said they planned to buy within a year. This jumped to 18% in the most recent survey, when home value growth was nearly flat at 0.3%. The index data also shows that rents are still growing faster than home values. The Zillow Rent Index rose 3.8% on an annual basis to $1,381, giving potential buyers another reason to consider entering the market. Continue reading
