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.
San Francisco’s bottom and middle-tier homes dropped significantly in inventory during the first quarter of 2016, decreasing 17.7 percent and 6.7 percent, respectively. The Bay Area’s top-tier sector hardly offset the drops, increasing a slight 1.7 percent.
Despite lulls in inventory in the first quarter, San Francisco saw bumps in all tiers of home values, with bottom, middle and top-tier home values increasing by 11 percent, 11.5 percent and 12.1 percent. With a ZHVI of $806,600, San Francisco easily tops any metro in average home value, according to the report.