According to the June Zillow Real Estate Market Reports, the national median home value is now $200,400, up about 7.5% since this time last year and representing the first time that the typical U.S. home is worth over $200,000.
“Even in areas where the housing market has slowed, home values are at or very near peak levels, selection is limited, demand is high and competition is fierce,” says Zillow Chief Economist Dr. Svenja Gudell.
High buyer demand, coupled with fewer homes for sale, is driving up home values across the country. There are 11% fewer homes on the market than a year ago, the greatest drop in inventory since July 2013. National home values have been rising at over 7% annually for the past five months, with many markets consistently rising in the double digits.
During the height of the housing bubble over a decade ago, the median U.S. home value peaked at $196,600 but never surpassed the $200,000 threshold.
Home values in Seattle, Dallas and Las Vegas are rising fastest, all reporting year-over-year gains in the double digits. In Seattle, home values are up 13% year-over-year to a median home value of $447,100. Home values in Dallas and Las Vegas are up 10.5% and 10%, respectively.
San Jose, Calif.; Columbus, Ohio; and San Diego reported the greatest drop in inventory since this time last year. Home shoppers in San Jose will have nearly 40% fewer homes to choose from than a year ago, and there are 33% fewer in Columbus and San Diego.