Home Value Growth Slowed Down in January 2017

A January 2017 market report found that home values grew at the slowest annual pace since November 2016. San Jose, Las Vegas, and Seattle had the top home value appreciation of the 35 largest U.S metros in that time.

Despite slower home value growth, home prices rose 8 percent year-over-year in January to $257,990, which Zillow attributes to the shortage of for-sale homes, and concludes that overall, sellers are then empowered to price their homes higher in this market climate. Total housing inventory in the U.S. dropped 9.7 percent year-over-year in January; the last time inventory rose year-over-year was in January 2015.

Accompanying the slowdown in home values was an uptick in mortgage rates, which have climbed steadily since the beginning of the year and ended Wednesday at 4.23 percent for a 30-year fixed-rate mortgage to a borrower with good credit. On Jan. 1, rates stood at just 3.83 percent.

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