The housing market is finally showing signs of moderation typically seen in the fall, according to Zillow’s latest market report. This could benefit buyers as home value appreciation slows.
“Home buyers shopping this fall shouldn’t expect the same frenzied demand that triggered bidding wars on listings this spring and summer,” said Jeff Tucker, Zillow senior economist. “The normal seasonal slowdown of autumn has returned, when many families are busy with back-to-school activities and planning for the holidays. Buyers can expect less competition, meaning more time to decide on a house and the potential for prices to fall on listings they’ve saved on Zillow.”
Although the market is still far hotter than usual, October witnessed normal fall trends of decelerating growth for rents, declining list prices, longer times on market for listings and more homes receiving price cuts before sale, the company said.
Home value appreciation slowed in October for the third month in a row, as home values rose 1.3% over September, slower than the all-time high monthly appreciation of 2% in July.
The typical home value in the U.S. measured by the Zillow Home Value Index (ZHVI) is now up to $312,728. Annual growth of 19.2% ($50,405) is the highest in Zillow data reaching back to 2000.
Median list prices have fallen since July, and the share of homes that saw a price cut before selling rose slightly over September, as well, now standing at 14.7% — nearly double the year’s low point in April.
The most recent data on the share of homes that sold above list price shows a monthly decline of 6.6% in September to 47.2%, down from a peak of 51.3% in July.