Home values drop for first time in seven years

Aly J. Yale
The Mortgage Reports contributor

Expert says values have “peaked”

There’s yet another positive sign for up-and-coming homebuyers. According to a new report, home values have fallen for the first time in seven years.
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Home values lag behind

According to the newly released April Market Report from Zillow, median home values fell slightly between March and April — the first monthly decline seen in seven years.

Though values didn’t drop year-over-year, their growth rate to lag behind 2018’s number. Last April, values were up 7.5 percent for the year. This April, they rose just 6.1 percent over the year.

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Home values also declined in 16 out of 50 of the nation’s largest metro areas. The majority of the country’s other large metros saw values remain flat.

According to Skylar Olsen, the director of economic research at Zillow, these stats are “raising our confidence that [home values] have peaked.”

City by city stats

Home values declined the most in San Jose, California, dipping 1.4 percent since March. Values have dropped for six consecutive months in the city.

Other cities where values are dropping include San Francisco, Pittsburgh, Seattle, Los Angeles, San Diego, New Orleans, Boston, Miami and St. Louis.

Still, according to Olsen, it might not quite be time for celebration just yet.

“A small percentage change in one month easily could rebound the following month, something that happens with housing data on a regular basis,” she said.

Home prices predicted to keep dropping; many markets still overvalued

The current national median home value is $226,800, down from March’s $227,000 but up from the pre-recession peak of $200,000.

Get today’s mortgage rates

Are you looking to buy a house while values are dropping? Want to invest before they drop too low? Then shop around and see what mortgage rates you qualify for today.

Verify your new rate (Aug 7th, 2020)