Home values rose 6.7 percent on a year-over-year basis in January to a median home value of $207,600, according to new data from Zillow
. This represents the slowest home value increase since November 2016.
West Coast markets recorded the highest level of annual home value appreciation last month, most notably in San Jose with a 23 percent spike in home values and a median home value of $1.2 million. Zillow also reported nearly 10 percent fewer homes on the market than a year ago, even though new home starts were up by roughly seven percent over the past year
On the rental side of housing, median rent across the nation rose 2.6 percent since last January, to a median payment of $1,441 per month. Two California markets saw the greatest median rent increases: Sacramento rose just over 8 percent while Riverside saw a six percent year-over-year increase.
"The pace of home value appreciation we experienced during much of last year was not sustainable, and a slow glide path down to a more normal appreciation rate has been expected for some time," said Zillow Senior Economist Aaron Terrazas. "This slowdown is nothing to be overly concerned with—demand from home buyers remains very high, and inventory remains tight. New home construction is growing, providing some relief to buyers who can afford the generally high price point of new homes."