The median value of US homes has increased to $198,000 according to data from Zillow.
The increase in April is 1% above the peak of 2007 ($196,600) and the year-over-year rise was 7.3% as tight inventory saw increased competition in many markets.
However, comparing current conditions to a decade ago, Zillow’s chief economist Dr Svenja Gudell dismissed the view that we are in a new housing bubble.
"We aren't in a bubble, and won't be entering one anytime soon. There are big differences between the market then and the market now: Then, loose credit, speculation and overbuilding were ingredients in a recipe for disaster. Now, healthy home buyer demand is being driven largely by a stable economy and demographic tailwinds, which is exactly what we would expect in a healthy market,” he said.
He added that the market fundamentals look healthy but supply is lagging demand, driving up prices. But, he said most markets are more affordable now than they were prior to the bust, even if mortgage rates rise.
Seattle, Dallas and Tampa reported the greatest home value growth over the past year. Home values in Seattle rose almost 12%, to a median home value of $432,300. Dallas and Tampa home values rose 11% year-over-year.
Meanwhile, the median nationwide monthly rent payment increased 0.7% over the past year to $1,412. Again, Seattle has shown a sharp rise – up 6% in the year.
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