{"id":157129,"date":"2023-08-21T14:52:24","date_gmt":"2023-08-21T20:52:24","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=157129"},"modified":"2024-02-28T10:36:21","modified_gmt":"2024-02-28T17:36:21","slug":"home-prices-reached-record-highs-again-these-markets-are-growing-the-most","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/home-prices-reached-record-highs-again-these-markets-are-growing-the-most","title":{"rendered":"Home Prices Reached Record Highs Again\u2014Where Are They Growing the Most?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">It looks like the housing market is back to breaking records again.&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.zillow.com\/research\/home-values-keep-climbing-in-spring-shopping-seasons-last-hurrah-july-2023-market-report-32943\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">According to Zillow<\/span><\/a><span data-preserver-spaces=\"true\">, the typical U.S. home value just hit its highest point in July, clocking in at just under $350,000. That\u2019s up 1.4% compared to a year prior and marks the first annual uptick in 16 months.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">It\u2019s surprising, given that mortgage rates are currently&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.freddiemac.com\/pmms\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">averaging over 7%<\/span><\/a><span data-preserver-spaces=\"true\">, according to Freddie Mac, but also not, considering just how low&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/redefining-what-a-balanced-market-is\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">housing supply<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;continues to be.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">In fact, new listings were down 26% in July year over year and 28% in June. Only 336,000 homes went on the market last month\u2014a number more fitting of \u201ca frosty January,\u201d as Zillow economist Jeff Tucker puts it.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Total active inventory was down, too\u201415% for the year and a whopping 44% compared to pre-pandemic days in July 2019. And according to Tucker, that\u2019s likely the best supply we\u2019re going to see all year.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">\u201cJuly will likely mark the high point for inventory in 2023, if it follows seasonal trends seen in 2018 and 2019,\u201d Tucker says. \u201cAt best\u2014for buyers\u2014it could inch slightly higher in August, like in 2021 and 2022, but either way, buyers should not expect to see many more homes available for sale on Zillow at any time this year than they do now.\u201d<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Where Home Values Have Jumped the Most (and Least)<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Of course, those are only national numbers. If you look at market-level data, some of the changes are even more significant.&nbsp;<\/span><\/p>\n\n\n<div class='tableauPlaceholder' id='viz1692650075942' style='position: relative'><noscript><a href='https:&#47;&#47;www.zillow.com&#47;research&#47;home-values-keep-climbing-in-spring-shopping-seasons-last-hurrah-july-2023-market-report-32943&#47;' target=\"_blank\"><img decoding=\"async\" alt=\" \" src=\"https:&#047;&#047;public.tableau.com&#047;static&#047;images&#047;MM&#047;MMR2023&#047;ZHVI&#047;1_rss.png\" style=\"border: none\" title=\"\"><\/a><\/noscript><object class='tableauViz'  style='display:none;'><param name='host_url' value='https%3A%2F%2Fpublic.tableau.com%2F' \/><param name='embed_code_version' value='3' \/><param name='site_root' value='' \/><param name='name' value='MMR2023&#47;ZHVI' \/><param name='tabs' value='no' \/><param name='toolbar' value='no' \/><param name='static_image' value='https:&#47;&#47;public.tableau.com&#47;static&#47;images&#47;MM&#47;MMR2023&#47;ZHVI&#47;1.png' \/><param name='animate_transition' value='yes' \/><param name='display_static_image' value='yes' \/><param name='display_spinner' value='yes' \/><param name='display_overlay' value='yes' \/><param name='display_count' value='yes' \/><param name='filter' value=':revert=' \/><param name='refresh' value='yes' \/><param name='filter' value=':linktarget=' \/><\/object><\/div>\n<p>                <script type='text\/javascript'>                    var divElement = document.getElementById('viz1692650075942');                    var vizElement = divElement.getElementsByTagName('object')[0];                    if ( divElement.offsetWidth > 800 ) { vizElement.style.width='800px';vizElement.style.height='600px';} else if ( divElement.offsetWidth > 500 ) { vizElement.style.width='800px';vizElement.style.height='600px';} else { vizElement.style.width='100%';vizElement.style.height='700px';}                     var scriptElement = document.createElement('script');                    scriptElement.src = 'https:\/\/public.tableau.com\/javascripts\/api\/viz_v1.js';                    vizElement.parentNode.insertBefore(scriptElement, vizElement);                <\/script><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">All in all, the Midwest and Northeast regions saw the biggest growth in home values from July 2022 to July 2023. In Hartford, Connecticut, for example, home values have increased 5.67% compared to last year. Cincinnati, Milwaukee, Wisconsin, Miami, Philadelphia, and Richmond, Virginia have all seen jumps of 5% or more, too.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">That said, the South and West appear to have experienced the biggest drops. Austin, Texas, notched the biggest dip in home values, with a jaw-dropping 10.42% downslide year over year. Phoenix\u2019s values dipped 6.11%, while Las Vegas saw a 5.99% fall. Other cities with notable drops included San Francisco, Dallas, and Sacramento, California.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Tides May Be Turning<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The numbers may have broken records this time around, but it\u2019s unlikely to happen again this year. In fact, the data is already starting to show signs of the typical seasonal slowdown.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">For one, sales are low. Pending sales\u2014which mean a home has gone under contract \u2014 were down 6.5% in July compared to June. The typical time on the market was 12 days for the month\u2014up from 11 days in June and 10 days in April and May. In addition, the share of homes with a price cut also increased.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">It\u2019s not great news for sellers, but it\u2019s certainly good for those considering buying a home, indicating the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/the-housing-market-is-stuck-in-limbo\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">housing market<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;is seeing less competition, more time to shop, and hopefully lower prices down the line.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">As Tucker puts it: \u201cThe gradual tapering of sales volume and sales speed together indicate that negotiating power has likely begun to swing in buyers\u2019 favor, and those who remain in the hunt should expect the pendulum to swing more in their favor as the summer wears on.\u201d<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_06ee96b490f55c1e486e11734fc7f207\" class=\"visibility-group alignwide  hidden\">\n        \n\n<div id=\"hero-block_89ede7d9d2e5e91d082b2b238abbe3a3\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 lg:w-1\/2 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size wp-block-paragraph\" style=\"font-style:normal;font-weight:800\">Find the Right Agent, Close the Best Deal<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color wp-block-paragraph\" style=\"font-size:18px\">Step #1: Use Agent Finder to match with top <em><strong>investor-friendly<\/strong><\/em> real estate agents to help you find, analyze, and close your next deal.<\/p>\n\n\n\n<div id=button-custom-event-block_c562682b34da2be73b4958202aab29f6 class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/agent\/match\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Agent Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/home-prices-reached-record-highs-again-these-markets-are-growing-the-most&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Find an Agent<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/2 first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/08\/Marketplace-Blog-Blocks-Agent-v3.png\" alt=\"investor friendly real estate agent\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color wp-block-paragraph\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/home-prices-reached-record-highs-again-these-markets-are-growing-the-most&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Home prices reached record highs in July after several months of decline earlier this year. These markets are showing the most growth going into the rest of the year.<\/p>\n","protected":false},"author":613679,"featured_media":157132,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7381],"tags":[],"class_list":["post-157129","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-housing-prices"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/157129","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613679"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=157129"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/157129\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/157132"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=157129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=157129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=157129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}