Annual home value growth has reached its lowest point since January 2013, according to new data from Zillow.
During November, Zillow determined the typical home value recorded an annual growth of 3.8 percent to $243,225. Among the 35 largest metro areas, only San Antonio and Washington, D.C., grew at a faster annual rate than they were at this time last year, while San Jose, Las Vegas, San Francisco and Seattle showed the most lethargic growth. Phoenix was the fastest-growing top-35 market last month, up 6.1 percent from November 2018.
"As we approach the winter holidays, housing, too, is taking a breather," said Skylar Olsen, Zillow's director of economic research. "Motivated sellers trying to close before the end of the year dropped their list prices in September and October, with November numbers showing the expected quiet in listing activity. That quiet is echoed by the slower annual appreciation and the lower-than-normal available inventory. But as we anticipate longer days to come, so too we anticipate some relief for housing. Lifting housing starts and permit numbers, strong jobs reports and the steady progress towards more stable and sustainable home value appreciation all point to a healthier 2020 for housing."
Separately, Zillow reported the typical rent last month was $1,600, up 2.3 percent from one year earlier. November marked the fifth consecutive month that annual rent growth has accelerated. Phoenix was also the fastest-growing market for rents, up 7.6 percent from one year ago.