- Home value growth steadily continued to increase in July 2020, the “fastest pace” since May 2019.
- Demand for homes has accelerated due to lower mortgage rates as well and changing age demographics among millennials.
- Inventory of listed homes, or the number of houses on the market, is “down 28%” at nearly 1,031,000 active listings.
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The US housing market continued to make strides in the month of July, as home value growth steadily continued to increase.
The typical home price in America grew 4.5% year-over-year to $US253,527 in July, according to a market report released on Thursday from real-estate database company Zillow. This marked the “fastest pace” of growth since May 2019.
“There are approximately 5 million more Americans aged 26-35 than there were 10 years ago,” the report said. “For those young households who still have their jobs and savings, they may view today’s low-rate environment as an opportunity to lock in an affordable mortgage payment for years to come, giving them space to start a family.”
Inventory of listed homes, or the number of houses on the market, is “down 28%” at nearly 1,031,000 active listings. This total could potentially fall under 1 million homes, Zillow’s data indicates. According to the company’s market report, inventory has declined because of “robust sales and anemic new listings.”
Furthermore, Zillow’s Observed Rent Index increased just 1.2% from July 2019 to $US1,749 while dropping by over 2% in the New York, San Francisco and San Jose area markets.
Earlier on Friday, Business Insider reported that US existing home sales in July increased a record 24.7% to a seasonally adjusted rate of 5.86 million as a result of both “low mortgage rates and pent-up demand.” This mark was good enough for the second month in a row of record sales gains.
The housing market has seen other signs of optimism recently. The US Department of Commerce on Tuesday said that housing starts in July surged 22.6% to a seasonally adjusted 1.5 million, good for “the largest jump since October 2016.”
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