San Jose has seen the highest seasonal price increases as buyers compete for extremely limited inventory, according to Zillow’s analysis.
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Home prices rise faster during the spring housing market, according to a city where housing costs are already high. Zillow analysis.
West Coast tech hubs see the highest seasonal home growth as buyers compete for extremely limited inventory, with San Jose home values rising 3.3% to $1,613,738 in March, according to the Zillow Home Value Index. San Francisco, Seattle, San Diego and Los Angeles followed, with monthly value increases of 2% or more, according to Zillow data.
These five cities are among the most expensive of the 50 largest housing markets in the U.S., which means they likely have large numbers of homeowners who feel locked into lower interest rates and feel they can’t afford to buy another one with today’s high interest rates. A house.
Their competition is also fierce, with frequent bidding wars and low inventory.
One thing expensive coastal metropolises and relatively affordable Midwestern cities have in common is fewer days on the market. The median time on the market in Seattle was 6 days, compared with 7 days in Chicago, 7 days in Detroit, and 5 days in St. Louis.
“Shoppers in today’s market should expect competition, especially for attractive listings in the lower price ranges – a rare opportunity these days,” he said. Skyler Olson, chief economist at Zillow. “Despite affordability challenges, house prices have continued to rise in most areas.
“In some places, new construction has eased some pressure and homeowners are less tied to mortgages, but that’s not the case in the nation’s most expensive metropolitan areas. In expensive areas, homeowners are holding onto large holdings at previously low interest rates. Mortgage debt, further increasing pressure.
Zillow found that monthly home price growth in Southeastern markets was relatively weak but still quite strong, with New Orleans, Tampa, San Antonio, Orlando and Jacksonville all seeing monthly increases of 0.5% or less in March.
Zillow’s report attributes the weak growth to inventory returning to pre-pandemic levels in some of these cities, in part because new construction provides more options for homeowners looking to upgrade. This could help ease competition and control price increases, the report said.
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