Median U.S. Home Value Surpasses $200k for the First Time

Posted by Michael Bates on July 21, 2017 1 Comment

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.

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Comments

  1. I know what many of you reading this article are thinking…here comes the next bubble, right?!

    Before you go off and liquidate all your assets in fear of “The Big Short II”, allow MortgageMessage to shed some light on this incredibly positive statistic that just made the headlines.

    The peak average home value of $196,600 pre-recession was driven by irresponsible underwriting guidelines (think “Stated Income Loans”) and a “feed-the-machine” Wall Street mentality that pushed the housing market into an unsustainable position. Hence, the housing bubble and eventual Great Recession.

    Today’s peak average of $200,400 has been driven by the universal business law of SUPPLY & DEMAND, complimented by the strictest underwriting guidelines this country has ever seen. Meaning this…everyone who has bought a home since 2009 has proven to have the household income to sustain the payments. In fact, we are currently at the lowest foreclosure/default rates this country has ever seen. And when you couple all of these facts with the “supply and demand” factor of the three largest segments of homebuyers all coming into the market at the same time for the first time in the history of our country (78 million Millennials buying their first home, 68 million Baby Boomers buying their last home, and 50 million+ “Boomerang” buyers finally getting over their credit challenges caused by the recession) it is no surprise that we have reached this new average home value high of $200,000+.

    If you are reading this message as a renter, rest assure, it is not too late to enter the market and enjoy the rise of home values over the next 6 to 8 years.

    If you were one of the lucky ones who has bought a home over the last few years and has enjoyed the 7.5% year over year appreciation levels, rest assure, it is not too late to take advantage of these higher values and low interest rates to eliminate your mortgage insurance, reduce your rate and term, or take cash out of your home for improvements or to consolidate your debt.

    Don’t allow the fear-mongering media to scare you away from seeing this headline for what it is…the American people, as expected, have responded to The Great Recession and have once again turned tragedy to triumph, reestablishing once and for all the backbone of our country’s economy: The Housing Market.

    Joe LaGiglia
    Founder of MortgageMessage

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