According to the latest report by Zillow, annual growth in national home values set another record high of 18.4% in September and rent growth remains very fast. Zillow, an American online real estate marketplace company, reported that in Nashville, the average home is around $365,573 – up 20.9% from last year and up 2.4% from August. Monthly rent prices are also skyrocketing this year. In Nashville, monthly rent prices are up 15.4% from last year at an average of $1,773.
On a national level, the U.S. Zillow Home Value Index (ZHVI) rose to $308,220 in September, up 1.6% from August. That’s the fourth-fastest monthly pace of appreciation recorded by Zillow in data dating back to 2000, but also the second-straight slowdown after monthly appreciation peaked this year at 2% in July (slowing to 1.8% in August). The typical U.S. home was worth 18.4% more in September 2021 than it was in September 2020. The nation’s typical monthly rent is $1,888, 12.9% higher than this time last year.
Nashville comes in below the national average rent price of $1,888, but above the nation home index value of $308,220 in September.
Home values are expected to grow 4.4% from September through the end of this year, and to end 2021 up 19.5% from the end of 2020.
The real estate giant said that relatively strong long-term outlook is driven by the slowdown in inventory growth, coupled with stronger pending home sales and for-purchase mortgage applications activity — which is expected to lead to tighter longer-term market conditions (and faster home value appreciation) than previously expected. Inventory was up just 0.4% from August, a smaller monthly gain than the previous four months, and remains almost 20% lower than this time in 2020.
“The housing market continued its gradual return to some semblance of normalcy in September, helped by the typical seasonal cooldown in shopping conditions that we expect to see every fall,” said Jeff Tucker, senior economist at Zillow. “Homes are still selling quickly, and prices have not receded, but it’s not quite as extreme a sellers’ market as we saw back in the spring and summer. Buyers today will benefit from a little more time to pick the right home and a few more listings to choose from.”
– – –