The typical home value rose to $259,906 in September, according to an analysis by Zillow.
Zillow said September’s month-over-month growth rate (0.8 percent) was the biggest jump since November 2005. It said annual growth in September (5.8 percent) was the largest in nearly two years.
“Home values are accelerating more quickly than any time since 2014, marking a sharp turnaround from a market briefly put on hold during the outbreak of the pandemic this spring,” Zillow Senior Economist Jeff Tucker said in a release.
“The historic shortage of homes available for sale has boosted home price appreciation, now that buyers are waging bidding wars for the few options left,” Tucker said. “Builders are racing to fill the gap, and we may see more listings next year if nervous sellers become reassured, but this shortage of homes is so deep that any reversal would take at least several months.”
During September, for the third consecutive month, home values increased in every major U.S. metro compared to the prior month. The largest increases in September were in Phoenix (11.7 percent), San Jose, Calif. (11.5 percent); and Seattle (10.7 percent).