Home values are setting new records in about half of the country’s largest metros, and the national median home value is now $4,100 more than it was in April 2007, just before the market crashed, according to the July Zillow Real Estate Market Report.
Home values in Denver, Dallas and San Jose have appreciated most beyond the previous record highs set at the peak of the housing bubble in the mid 2000s. Homes in Denver are almost 60% more valuable now than during the bubble, increasing from a median home value of $235,900 in April 2006 to a current median home value of $371,100.
When the housing market crashed, home values plummeted, and it has taken about 10 years for home values to reach new record highs. Strong labor markets and steady income growth have pushed up home values in the nation’s hottest markets more quickly than in others. Among the 35 largest housing markets, 15 have higher median home values than ever before.
An abundance of well-paying jobs in Portland, Ore.; San Francisco; and Seattle has quickly driven up home values as job seekers flood these markets looking for new opportunities. In Portland, the median home value is about 26% higher now than during peak bubble years, and about 20% higher in San Francisco and Seattle.
Additionally, more than 48 percent of individual homes nationwide are currently worth more than they were prior to the onset of the Great Recession. In Denver, 99.5 percent of homes are worth more now than during the peak of the housing bubble, but in Las Vegas, less than 1 percent of homes are more valuable.
“Home values are high, but affordability – while suffering a bit lately – is still okay, largely because of very low mortgage interest rates helping to keep monthly mortgage payments in check,” says Zillow Chief Economist Dr. Svenja Gudell. “The more pressing issue is abnormally low inventory, which is translating into an extremely competitive environment for home shoppers. Bidding wars and homes selling for over asking price have been common themes in many markets this summer, and continued competition in the face of limited supply will only continue to push home values up going forward.”
The median home value across the U.S. rose 6.8% over the past year, to a Zillow Home Value Index of $200,700, which is $4,100 more than in April 2007, when home values were at their previous peak.
Seattle, Dallas and Tampa, Fla., reported the greatest year-over-year home value appreciation between July 2016 and July 2017 among the 35 largest U.S. metros. In Seattle, home values rose almost 13% over the past year, to a median home value of $450,900.