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Zillow’s July Real Estate Market Report shows that home values for the month grew 5.2% annually to an average of $229,000—the seventh-consecutive month with declining appreciation.
July 2019 reported the smallest annual growth since October 2015 and missed the mark from 2018, when home values rose 7.7% year-over-year. Values were still up 0.3% from June 2019.
"As talk builds of a potential recession in the next year or two, housing remains fairly stalwart," said Zillow Director of Economic Research Skylar Olsen. "The slowing appreciation is ultimately a good sign that the market is adjusting in response to the growing unaffordability of down payments, while low mortgage rates are keeping those with the required savings interested despite softer growth out the gate. The uptick in the rate of homes coming onto the market—a good and true increase in supply—should be a boon to those inventory-starved home buyers still searching near the close of home shopping season.
“While buyers are catching a break, renters have seen prices continue their steady upward climb, presenting yet another obstacle in the quest to save for that down payment."
The highest annual growth in values was 9.4% in Salt Lake City, Utah. Zillow stated that growth was also reported in Indianapolis, Indiana (8.1%) and Charlotte, North Carolina (7.3%). New Orleans, Louisiana; Birmingham, Alabama; and Oklahoma City, Oklahoma, saw greater year-over-year growth.
California saw some of the higher drops in value over the past year. Home values in San Jose and San Francisco depreciated from 2018 at rates of 10.5% and 1.1%, respectively. San Jose also has the highest home value, with the average home valued at $1.14 million.
Zillow states that home values grew 24% in San Jose last year, with the latest numbers representing a 34.5% annual difference.
Despite the deceleration of value, Zillow’s report shows that inventory grew 1.3% annually, which halts four-consecutive months of declines. New listings rose 5.7% year-over-year.
