AgentMarkets & Economy

Los Angeles home values dwarf national average, Zillow says

A recent market report shows average Los Angeles home prices to be more than triple 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

Despite seeing a small uptick in inventory for top-tier homes at 1.3 percent in the first quarter of 2016, the Los Angeles metro area lost a good chunk of inventory in other tiers, with bottom and middle-tier home inventory dropping 26.3 and 11.3 percent.

Screen Shot 2016-05-03 at 12.58.16 AM

Although its inventory may be lacking, L.A. metro’s home values are nothing to sneeze at, with a bottom-tier ZHVI at $369,000 in the first quarter — more than $80,000 higher than the national average ZHVI, which spans all tiers.

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

Screen Shot 2016-05-03 at 12.58.31 AM

All home tiers in L.A. metro increased in the first quarter, with both bottom and middle-tier home values increasing 6.2 percent and top-tier home values going up 8.1 percent. The average ZHVI in the first quarter was $565,400.