The dip is “another signal that the housing market continues to pump the brakes after several years of torrid growth.” - Skylar Olsen, Zillow’s director of economic research.
All good things must come to an end, and that includes nearly a decade of growth for home values.
Month-over-month home values have increased steadily since 2012, according to Zillow. But in April, however, the median home value fell 0.1 percent from March, which is the first time the market has posted a monthly decline in seven years, Zillow found.
Year-over-year appreciation data show U.S. home values up just 6.1 percent from last April, which is below annual growth of 7.5 percent in April 2018.
The dip is “another signal that the housing market continues to pump the brakes after several years of torrid growth,” wrote Skylar Olsen, Zillow’s director of economic research. “The national housing market has been cooling for months, with annual gains slowing to 6.1 percent in April, down from April 2018 annual growth of 7.5 percent.”
Home values in 46 out of the 50 largest U.S. metros are flat or down from March to April, according to Zillow. San Jose, Calif., reported the largest monthly drop of 1.4 percent, which is the metro’s sixth consecutive month-over-month drop.
Zillow stresses that month-over-month metrics are volatile in nature and that investors shouldn’t put too much weight into them when compared to more steady quarterly or yearly metrics. Nevertheless, Olsen contends the data show it’s probable that home values in 16 of the largest 50 U.S. metros have peaked as their home values are down this month and have been flat or falling for the last three month.
San Jose, San Francisco, Pittsburgh, Los Angeles, Seattle, San Diego, New Orleans, Boston, Miami, St. Louis, Portland, Ore., Tampa, Virginia Beach, Baltimore, Philadelphia and Houston have all suffered flat or dipping values for the last quarter, Zillow found.
While buyers may be pleased by dipping values, inventories of homes for sale also dipped, according to Zillow. The number of U.S. homes for sale dropped 1.7 percent year-over-year and ten of the largest 50 metros posted double-digit inventory declines. Leading in inventory declines are Washington, D.C. at 31.8 percent, Kansas City at 24.1 percent, Oklahoma City at 17.8 percent and Baltimore at 17.3 percent.
The number of foreclosures was also down in April, according to real estate analytics firm ATTOM Data Solutions. In April, 55,646 U.S. properties received a foreclosure filing — down 5 percent from the previous month and down 13 percent from a year ago. It’s the 10th consecutive month with an annual foreclosure rate decline.
In April, 26 major metros experienced an annual increase in foreclosure starts, with Deltona-Daytona Beach leading the pack with 221 foreclosure starts and a 211 percent increase, according to ATTOM. San Antonio, Texas is up 101 percent, followed by Jackson, Mississippi at 98 percent, Orlando, Florida at 90 percent and North Port-Sarasota, Florida at 51 percent.