The Average Home Price In The U.S. Is Up 13.5% In The Last Year, According To Data
Thanks to low mortgage rates and so many Americans escaping big cities during the madness of 2020, the average price of suburban homes has skyrocketed. And according to a recent study by Zillow, the average home price in the U.S. has hit an all-time high of $287, 148.
From May 2020 to May 2021, the average home price in the U.S. has gone up by 13.2%. When you consider the fact that most houses are on the market for an average of only 6 days, that number doesn’t seem so high. But every sale isn’t a bidding war and some areas of the U.S. are bringing that average down to earth.
The three cities leading the way in this housing market boom, with the largest change in average home price, are Austin (30.5%), Phoenix (23.5%) and Salt Lake City (20.6%).
How Long Will This Hot Housing Market Last?
According to Zillow, there doesn’t seem to be any ending in sight. And if you’re looking to sell, the best time might be later this year or early 2022.
The rapid home price appreciation that has marked the past year in housing is not expected to let up any time soon, though affordability concerns and continued low inventory are putting somewhat of a damper on the outlook for sales, according to the latest Zillow home value and sales forecasts.
Zillow economists expect home values to increase 6.1% over the next quarter (May-August), by 17.9% through the end of this year (December 2020-December 2021) and by 14.9% through the twelve months ending in May 2022.
Ultimately, while demand for homes remains strong, limited supply is constraining sales activity — especially at lower price points, contributing to some affordability concerns. Even so, enduring demographic tailwinds, persistently low mortgage interest rates and an improving economy should continue to buoy demand, and recent signs of improved home seller sentiment suggest that some inventory relief could be on the way.
The team at Zillow obviously lives and breathes all things real estate, but with any bull market, downturns can happen at any time and outside factors, like the overall economy or a stock market correction, could be a catalyst. And, if you recall the average house price in the U.S. sky rocketed to an all time high in 2007 before the real estate market crashed (thanks, subprime mortgage crisis!) and took almost an entire decade for prices to comeback.