In a report released by Zillow, national home values rose just .2 percent in January from December. Inventory rose in 22 of the nation’s 35 largest metros, and helped slow down the rising value of homes.
Year-over-year, home values rose 6.3 percent in January, down from previous gains of 7.1 percent in August, 2013. Home values are expected to rise another 3.4 percent in the next 12 months.
The Zillow Home Value Index, which according to the report, “measures the median estimated home value for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives,” notes that January’s figure of $169,600 is the smallest monthly increase since May, 2012.
Although inventory remains tight, the number of homes listed for sale on Zillow rose 11.1 percent annually in January.
States that were hit the hardest from the housing recession showed some of the largest increases in home inventory; cites like Las Vegas (up 42.8 percent), Phoenix (up 30.5 percent) and Sacramento (up 26 percent) all showed large gains.
Home appreciation slowed in January for these metros, as more available homes allowed buyers to stay away from bidding wars that drove up home prices.
Last year, a smaller inventory of homes contributed to a rise in home values, but increased inventory is having a moderating effect. Dr. Stan Humphries, Zillow chief economist, said that the increased supply is available because “more sellers are free to list their homes after being released from negative equity, builders continue to ramp up construction and many homeowners decide to list their homes and capitalize on recent gains.”
The outlook for January, 2014 to January, 2015, is expected to rise another 3.4 percent to $175,301, according to the Zillow Home Value Forecast.
Large metro areas expected to show the most appreciation over the next year include Riverside (13.3 percent), Orlando (10.3 percent), and Sacramento (9 percent).