The median listed home value in the United States clocked in at $226,800 in April, according to the latest monthly home data released by Zillow. That value is 0.1 percent lower than March, making it the first month-to-month home price decline since February 2012.
“The widespread decline in home value growth in April – the first in many years – will turn heads,” Skylar Olsen, Zillow’s director of economic research said in a statement. “But it’s too early to say if we’ve hit another national home value peak and are at the beginning of a sustained downturn, or if this is just a bump in the road.”
Despite the monthly decline, home prices are still up 6.1% percent – the fourth straight month of slowing price appreciation.
“Month-over-month numbers are volatile, and this small decline could reverse itself before the year is out and before national home values go negative on a year-over-year basis,” Olsen added. “That said, the likelihood that home values have peaked in several local markets is real. The price correction in these areas should continue after years of significant home value growth that substantially outpaced income growth.”
The price declines were driven primarily by the West Coast markets, but Zillow’s research team believes prices have peaked in a number of major cities, including Los Angeles, Philadelphia, Houston, Miami, Boston, San Francisco, Seattle, San Diego, St. Louis, Tampa, Baltimore, Pittsburgh, Portland and San Jose.
Values fell in 32 of the 35 largest housing markets in April and stayed static in two more markets. Riverside, California was the only market that actually saw home values increase month-over-month.
Rents continue to grow nationwide, however, increasing 2.6 percent on an annual basis to a median ment of $1,477. It’s the sixth consecutive month of median rent increases.
Mortgage rates grew slightly month-over-month, reaching as high as 4.17 percent on a 30-year mortgage and ending the month at 4.06 percent, up four basis points from April 1.