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

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

6 ways empowered agents embrace disruption to drive success
Using technology to generate leads and win listings READ MORE

 

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.