Growth in home values offers silver lining for homeowners
Home value growth is finally on the rise again. In fact, according to newly released data, home values are up nearly 4% from just one year ago.
February sees uptick in home value growth
According to new data from Zillow, February saw home values break their longstanding trend, with appreciation finally showing gains for the first time in nearly two years. Though values haven’t actually dropped in almost eight years, the rate of growth has slowed every month since May 2018.
February saw a reversal of directions. The average home value clocked in at $247,084 – a jump of 3.9% from the February prior and up from the 3.8% growth rate seen in January.
Home value growth rose the most in Phoenix (7% growth year–over–year), Memphis, Tenn. (6.7%), and Birmingham, Ala. (6.45%). Growth was slowest in San Jose, Calif., where home values only jumped 0.4% over the year. Hartford, Conn., and New York were also near the bottom.
A silver lining for sellers
The news of growing home values is promising for those considering selling their properties – especially as inventory continues to bottom out.
According to Zillow data, home inventory was down 8.4% year–over–year in February, marking the third consecutive month that nationwide listings were under 1.5 million. Inventory was down the most in Phoenix, which has seen a nearly 30% dip in listings since 2019.
With growing demand and a shortage of properties, sellers can likely get a premium by listing their homes in the current market.
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