Housing Market Report for the Beginning of the New Year
The New Year rang in with home values dropping 0.1% which made the average home value at $329,542 according to the Zillow Home Value Index (ZHVI). This is down from the record-high of 18.8% that was reported last April.
This Zillow Home Value Index was the first reported on the new version. The new version is now based on the neural network-driven Zestimates that Zillow produces for nearly every home in the United States. So this means that the ZHVI closely tracks the vitality in the market when it is changing very fast and will be able to report a better picture for higher-priced sellers.
The mortgage rates are dipping which is great news for both buyers and sellers in the housing market. Year-over-year home value appreciation is highest in Florida. For the 50 largest metro areas the leaders included Miami (12.8%), Jacksonville (9.3%), Hartford (8.6%), Richmond (8.6%) and Orlando (8.4%). On the other end were Western and tech-centric metro areas the prices were down with San Francisco (-4.9%), Sacramento (-2.6%), San Jose (-2.3%) Austin (-1.1%) and Seattle (0.8%).
Buyers did begin to return to the market at the beginning of the year but the newly pending listings were still 20% lower than the same time last year. January saw a 30% increase from December when it came to newly pending listings. The strongest winter season was still reported pre-pandemic.
Unfortunately, sales were down the lowest this January since 2018. The year began with only 232,000 new listings where it was reported at 328,000 new listings in January 2021. The listing pool will probably stay on the low side due to a much lower “normal” volume of homes listed.
If you are in the market to list or buy a home, it is still a good market. Choosing a local real estate agent to help you with the process is a wise decision, especially in the current housing market.
