Most metro areas have seen home values rise more than $10,000 in the last year.
If you were holding out on buying a home this last year, you’re already looking at paying tens of thousands of dollars more.
Zillow says the median home value is up more than $12,000 from a year ago, and in most markets, homes are worth more than they were before the Great Recession.
A big supply and little demand have increased values nationally; there are 11.7 percent fewer homes than this time last year. With a scant selection, prices have sharply risen in many major metros across the country.
San Jose, Calif., one of the most expensive areas in the country, saw the biggest increase in home value. There, homes are 12.3 percent more than they were a year ago.
“We are in the midst of an inventory crisis that shows no signs of waning, impacting potential buyers all across the country,” says Zillow chief economist Svenja Gudell. “Unfortunately, there’s just not enough homes for sale, and demand will continue to drive prices higher until we reach a better balance between supply and demand.”
While San Jose saw the biggest jump, other metro areas saw big spikes as well. Home values in Seattle saw an 11.7 percent increase from this time last year while Las Vegas is up 11.2 percent from 2016.
Increases in home values are up all over the country, but some places aren’t as drastic as San Jose and Seattle. Washington, D.C. is only up 2.4 percent and Baltimore has increased 3.1 percent.
“Home values are growing at a historically fast pace, and those potential buyers want to get in the market while they still can,” Gudell says. “But with homes gaining so much value in just one year, buyers — especially first-time buyers — have to set aside more and more money for a down payment just to keep up with them.”
Buying a home is getting increasingly expensive, especially this last year. While it might be faster to get one now than in years prior, it doesn’t mean it’s a good buy to get one now. We may or may not be in a housing bubble that is hurting a lot of people’s chances at getting homes right now.
High home values and mounting debt, like credit cards and student loans, are also big detriments to buying homes right now, especially for millennials. Zillow also mentions that rents are going up as well, since many potential homebuyers fear buying a home so they are staying put by renting.
In some places, rent is actually going down: Miami-Fort Lauderdale and Pittsburgh have dropped 1.5 percent in since this time last year.
But for the majority of the country, rent is going up. Sacramento saw a 7 percent jump, Riverside, Calif., is up 6.2 percent, and Minneapolis-St Paul has risen 5.3 percent since 2016. On average, rent is going up, and renters are being priced out, even in the most inexpensive units in cities all over the country. For many, the question of renting or buying continues, even as both see enormous increases in costs.
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Article last modified on July 3, 2018. Published by Debt.com, LLC . Mobile users may also access the AMP Version: Home Values Have Spiked in the Last Year - AMP.