Zillow recently released its Q1 2016 Market Report, noting that inventory across the nation has dropped almost 6 percent annually, with over 10 percent decreases in both bottom and middle-tier homes. The real estate website estimates the national Zillow Home Value Index (ZHVI) at $186,200 in the first quarter of 2016.
Other significant findings from the report include:
- There are 5.9 percent fewer homes for sale in the U.S. than a year ago.
- There are 10.4 percent fewer entry-level homes for sale in the U.S. than a year ago.
- Low supply is driving up home prices among entry-level homes, which are often sought after by first-time buyers.
- National home values rose 4.8 percent to $186,200, according to the first quarter Real Estate Market Reports. Rents rose 2.6 percent to $1,389.
Although Houston’s inventory wasn’t covered in Zillow’s report, the metro area’s ZHVI increased in every home tier during the first quarter of 2016, with bottom, middle and top-tier homes all showing slight upward movement.
Despite the increases, Houston’s current average ZHVI ($145,700) sits more than $40,000 below the national average. After steep increases from 2013 to 2015, the average value of Houston’s top-tier homes is starting to fall back into similar growth rates of the middle and bottom-tier sector.