Zillow: Typical U.S. Home Worth More Than $200,000 for First Time

Home values rose by 7.4 percent over the past year, putting the median home price above $200,000 for the first time, said Zillow Inc., Seattle.

The company’s June Real Estate Market Reports said the median home value stood at $200,400, driven by high demand and low inventories. Zillow reported11 percent fewer homes on the market than a year ago, the greatest drop in inventory since July 2013.

The report said national home values have been rising at more than 7 percent annually for the past five months, with many markets consistently rising in the double-digits. During the height of the housing bubble over a decade ago, the median U.S. home value peaked at $196,600 but never surpassed the $200,000 threshold until now.

“The national housing market remains red hot and shows no signs of slowing, even as some local markets like the Bay Area have noticeably cooled,” said Zillow Chief Economist Svenja Gudell. “But even in areas where the housing market has slowed, home values are at or very near peak levels, selection is limited, demand is high and competition is fierce.”

The report said home values in Seattle, Dallas and Las Vegas rose fastest, all reporting year-over-year gains in the double-digits. In Seattle, home values rose by 13 percent year-over-year to a median home value of $447,100. Home values in Dallas and Las Vegas rose by 10.5 and 10 percent, respectively.

San Jose, Columbus, Ohio and San Diego reported the greatest drop in inventory since this time last year. Home shoppers in San Jose saw nearly 40 percent fewer homes to choose from than a year ago; Columbus and San Diego inventories fell by one-third from a year ago.

The report also said median rent across the nation hel steady at 1 percent annual gain for the sixth consecutive month. The median rent across the country is now $1,422 per month, up just over 1 percent annually.

Seattle, Los Angeles and Sacramento, Calif. reported the greatest annual rent increases among the 35 largest U.S. metros. In Seattle, rents rose by 5 percent to $2,142 per month. Median rent in Sacramento rose by 4.5 percent; in Los Angeles, median rent rose by 4 percent.

Median rent fell in 12 of the 35 largest U.S. metros, falling the most in Pittsburgh (down 4 percent) and Houston (down 3 percent). Miami, San Jose and San Francisco are also among the metros where rent is cheaper this year than last.