Nationwide home values have appreciated 7.2 percent to a median value of $195,300, according to Zillow. Though appreciation varies greatly between cities, an examination by price category reveals important trends.
Breakdown by City?
At 12.4%, Nashville, Tennessee is the American city that has appreciated the greatest amount in the past year. Other cities with strong growth include Portland, Oregon (12.1 percent), Tampa, Florida (11.9 percent), Orlando, Florida (10.8 percent), and Detroit, Michigan (10 percent). On the other hand, cities like San Jose and San Francisco are seeing a slowdown of home appreciation growth as it becomes more expensive to live on the West Coast. In these markets, people are finding homes too expensive to buy which is limiting demand and reducing pressure on home values.
Breakdown by Price Category?
Core Logic, in their most recent Home Price Insights Report, breaks down the increase in home prices into 4 different price categories:
The lower priced homes, which have been more in demand, especially among first time home buyers, appreciated at greater rates than more expensive homes. In fact, the lower priced homes had an appreciation rate of almost double that of high priced homes.
Summary?
Though prices are expected to rise in 2017, analysts predict that growth will be slower than in 2016. No matter what city you are in, you may earn better returns from investments in lower priced homes.
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