Tracking Regional Home Appreciation with the National Rate News / Arlington
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According to recent data, the Washington area’s rate of appreciation is increasing year-over-year just like that of the country along with its national counterpart.
With a typical home value of $ 498,649, the DC region rose 11.5 percent year over year in April, according to new figures from Zillow.
This company uses its own records and other data to determine house average values for large metropolitan areas. All of the similar analyzes, not accurately captured using similar data compiled by groups like the National Association of Realtors, have shown over the past year that the scores are at home in the region and the nation.
And despite not unreasonable public concerns – Google searches for “property bubbles” has grown exponentially in recent months – Zillow economist Jeff Tucker said the market was not in danger of overheating as it was nearly 20 years ago Case was.
“Both hot markets saw extreme price increases in a relatively short period of time. But that’s where the similarities end, ”said Tucker.
“Unlike the combination of speculators and people who spend above their means on nontraditional loans in 2004 and 2005, today’s home buying demand is driven by well-qualified buyers taking out traditional fixed rate mortgages,” he said. “Builders are shooting at all cylinders to meet the excessive demand created by low mortgage rates and millions of millennial buyers campaigning for limited homes.”
(The new home market segment, however, has encountered roadblocks due to rising material costs and likely more regulatory hurdles imposed by a Democratic presidential administration and Congress. The National Association of Home Builders recently castigated the Biden administration for higher tariffs on Canadian lumber to propose at a time when wood prices are soaring.)
This spring, despite the huge leaps in house values, houses are still selling at record speed. Nationally, it typically takes just seven days for a seller to accept a listing after listing, while listings disappear in an average of three days in the Kansas City, Columbus, and Cincinnati Midwest markets.
The Sun Belt and Mountain West markets lead all of the major (50 largest) metropolises in annual appreciation, particularly Austin (up 25.5 percent to USD 441,931) and Phoenix (up 20.4 percent to USD 355,822). Salt Lake City was just behind with an increase of 18.3 percent. Taking into account the 100 largest metros, Boise recorded the highest price increase over the previous year at 32.5 percent. Zillow economists expect another year of home appreciation and forecast growth of 11.8 percent through April 2022.
All that growth has resulted in a wild ride for first-time buyer Tiauna Hansen and her fiancé Tyler Hensley, who put an estimated bids on 15 homes before eventually closing a two-bedroom, one-bath home near Boise in April.
The young couple had entered into a contract to buy another home when the valuation was lower than the asking price and the deal failed.
“We were so excited to buy our own home,” says Hansen. “We had already made plans to expand this house and build a workshop just to have to start our search over. But that experience ultimately made us more determined and brought us to the house we are in now, which is perfect for us. “
The couple used an FHA loan and down payment assistance to buy their new home at full price and can now turn their attention to the September wedding.
Her story will resonate with the thousands of buyers struggling in today’s marketplace, but despite numerous stories of bidding wars, not every home sells above the list.
Of all home sales that were completed in February (the last month with full data), 28.6 percent sold above their original list price. That’s more than double the portion that sold above the list in February last year, but it still means the other 71.4 percent sold at or below list price.
More than half of the homes sold above list price nationwide were found on just four subways: San Francisco and San Jose (the only two communities in the 50 largest where Zillow’s home value exceeds $ 1 million) and Seattle and Salt Lake City.
Metro with the lowest percentage of above list price homes are Miami (11 percent), Orlando (13 percent), and Las Vegas (15 percent).