Homes values cooled off a bit in January, seeing their smallest monthly increase since May of 2012, up only 0.2 percent from December. Year-over-year values were up 6.3 percent in January, however. The slower increase is due in part to the rise in housing inventory levels across the nation. The number of homes for sale was up over 11% annually in January, which marks the fifth straight month of increasing year-over-year inventory.
This situation will help home buyers to have more buying power in the spring months as more inventory continues to hit the market and home values start to level off. This increased balance in the market is another step towards our market returning to more normal conditions.
Here in the Atlanta metro area, the Zillow Home Value Index (ZHVI) increased 16.2% year-over-year in January and the home inventory level increased over 10% during that same period.
This isn’t to say that the market is bad for sellers, however. The market had very much been in favor of the seller for quite some time, with many properties experiencing bidding wars from multiple buyers. The conditions are leveling off, and buyers are gaining more leverage than they have had in some time.
If you are in the market to buy or sell, please contact me today. I can help you find out just how much home you can afford in today’s market, or how much your current home is worth. The consultation is no obligation. Call today, 866-465-2736.
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