Zillow recently released its Q1 2016 Market Report, noting that inventory across the nation has dropped almost 6 percent annually, with over 10 percent decreases in both bottom and middle-tier homes. The real estate website estimates the national Zillow Home Value Index (ZHVI) at $186,200 in the first quarter of 2016.
Other significant findings from the report include:
- There are 5.9 percent fewer homes for sale in the U.S. than a year ago.
- There are 10.4 percent fewer entry-level homes for sale in the U.S. than a year ago.
- Low supply is driving up home prices among entry-level homes, which are often sought after by first-time buyers.
- National home values rose 4.8 percent to $186,200, according to the first quarter Real Estate Market Reports. Rents rose 2.6 percent to $1,389.
Washington D.C. saw its largest inventory change in the bottom-tier sector during the first quarter of 2016, which decreased by 10.8 percent. The metro’s middle-tier sector decreased, too, by 0.7 percent, but the top-tier home inventory saw slight a increase at 2.7 percent.
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At $364,100, Washington D.C.’s average ZHVI in the first quarter almost doubles the national average. All tiers of home values in the metro area also saw increases in the first quarter, with bottom, middle and top-tier homes increasing at rates of 2.8 percent, 2 percent and 1 percent, respectively.
