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.
Although its top-tier sector increased 2 percent in inventory in the first quarter of 2016, Chicago saw quite a dip in bottom and middle-tier inventory, with each losing 14.2 percent and 10.5 percent during the span.
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Chicago saw small increases in home values across the board in the first quarter, with bottom, middle and top-tier homes increasing 0.7 percent, 3.1 percent and 1 percent, respectively.
With an average ZHVI of $193,800, Chicago’s home values might not reach those of Los Angeles, New York or San Francisco, but it still remains more than $5,000 over the national average.