Home value appreciation slowing in major markets

According to the Zillow Home Market Real Estate Report annual home value growth slowed in more than 50 percent of the country’s largest housing markets in the last year. Seattle saw a drop from 12.4 percent to 5.0 percent from December 2017 to December 2018 while San Jose declined from 16.8 percent to 9.9 percent over the same time period.

Despite the drop in 19 of the top 35 metro markets, overall the nation’s home value appreciation was up 7.6 percent over the past year. More affordable Southern markets, such as Atlanta, showed an even greater increase.

Share

Bay Area Homes Have Slower Value Appreciation

Precisely because they are so expensive to begin with, homes in the most expensive markets – including the Bay Area – are showing a significantly slower value appreciation according to a recent report by Breakeven Horizons.

When home values rise quickly buyers will see their home equity grow much faster, offsetting and eventually allowing them to recoup the costs of buying a home.

Nationwide, home value growth ended 2016 at 6.8 annual growth. However, in the San Jose and San Francisco Bay Area it can take up to 1.5 to 2 years longer to break even on a home purchase.

Share