AgentMarkets & Economy

Houston home values increase with top-tier accession slowing, Zillow says

Despite increases in all home tiers, average Houston home prices remain under the national average

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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.

Zillow-Q1-National-Inventory

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.

Zillow-Q1-Houston-HomeValues

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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.