Zillow Says Home Values Decline for 2nd Month
A new report from Zillow says home values slipped for the 2nd consecutive month as mortgage costs continue to sideline buyers. Zillow says affordability is driving market momentum with low-cost markets remaining competitive. Their data show the typical home value fell 0.3% from July to August and is now $ 356,054. The largest monthly decline since 2011 and the second monthly decline in a row.
“Substantial day-to-day and week-to-week rate movements mean that many potential buyers are able to qualify for a loan one week, but not the next, or vice versa…Even buyers able to afford a house at current rates could feel frozen, waiting for mortgage rates to fall dramatically again, like they did from the end of June to mid-July, when rates dropped 50 basis points in just two weeks.” Said Skylar Olsen, chief economist at Zillow.
- The typical home value fell 0.3% from July, the largest monthly decrease since 2011.
- Competition for homes is strongest in affordable metros and weakening fastest in expensive ones.
- Lack of competition among buyers has raised both inventory and listings’ time on the market.