Appreciation in Home Values is Slowing

Zillow’s latest Real Estate Market Report shows that appreciation in home values is slowing definitively after nearly two years of growth, easing concerns about another housing bubble.

In Denver, home values grew by 10.4 percent year-over-year in the third quarter of this year, slower than third-quarter 2013’s year-over-year appreciation of 11.3 percent.

Average home values in Denver in the third quarter of 2014 were $271,200.

In addition to allaying some fears about housing bubbles, the slowdown in home value appreciation nationwide will allow some homebuyers that have been priced out of the market to reconsider buying.

The rate of annual home value appreciation nationwide peaked at 8.1 percent in April and has fallen every month since then. Even considering that, U.S. home values were still up 6.5 percent year-over-year at the end of the third quarter to $176,500.

The rate of value appreciation is expected to continue slowing, with values growing by 3 percent, about half of their current pace, through the end of the third quarter of 2015.

Denver’s rate of appreciation is expected to drop to 3.8 percent in 2015.

Interested in buying now that things are slowing down? Check out our featured homes.

Alaris Properties, LLC

 


 
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