The U.S. Zillow Home Value Index (ZHVI) reports another record pace of appreciation in September, but after a peak month in July, a heated housing market may be slowing down.
The monthly appreciation rate for September rose 1.6% from August, but this growth comes after rates hit a peak of 2% in July, signaling more balance in the month ahead.
Annual growth in home values set another record high of 18.4% in September, but a closer look at the data reveals that the modest slowdown in growth that began late in the summer continued into early fall, giving buyers slightly more selection and a bit more time to breathe.
The U.S. Zillow Home Value Index (ZHVI) rose to $308,220 in September, up 1.6% from August. That’s the fourth-fastest monthly pace of appreciation recorded by Zillow in data dating back to 2000, but also the second-straight slowdown after monthly appreciation peaked this year at 2% in July (slowing to 1.8% in August). The typical U.S. home was worth 18.4% more in September 2021 than it was in September 2020, surpassing August’s then-record of 17.5% annual appreciation.
Home values were up on the month and the year in all 50 of the largest metro areas tracked by Zillow. Monthly growth in these markets ranged from a low of 0.4% in San Jose to 3.0% appreciation in Raleigh. Annual appreciation in large markets was in the double digits across all 50 markets, ranging as high as an eye-watering 44.9% in Austin and 32.2% in Phoenix to a comparatively “sluggish” rate of 13.2% in New Orleans.
Advertisement
Related Stories
Housing Markets
Metros Where Housing Prices Have Doubled in Less Than 10 Years
Historical data show it's taken less than 10 years for home prices to double in 68 of the country’s 100 largest cities
Affordability
The Disappearing Act That Is Middle-Income Housing
An expert weighs in on the diminishing supply of middle-income housing, which is particularly acute in California, and what to do about it
Market Data + Trends
A Look at Homeownership Rates Across the Nation
Data for homeownership rates in the 100 largest US cities show Port St. Lucie, Fla., in the top spot, while West Virginia is the state with the most homeowners