Undersupplied and Overheated

first_imgUndersupplied and Overheated August 24, 2017 482 Views At the epicenter of the housing crisis was the underwater borrower, a byproduct of unrealistic price points and an over-heated housing market. Now, according to recent Zillow data, some markets are overheating once more.Zillow’s Home Value Index (ZHVI) takes the median estimated home value for a given geographic area on a given day and includes the value of all single-family residences, condominiums, and cooperatives—even if they haven’t been sold—on a seasonally adjusted basis. According to Zillow’s ZHVI, some markets are overheating.In the U.S., the median ZHVI is $200,700, compared to its pre-recession bubble peak of $196,600. Denver, the No. 1 inflated market sits at a ZHVI of $371,100 against a bubble peak of $235,900. This is 57.3 percent above the mark.“More than 48 percent of individual homes nationwide are currently worth more than they were prior to the onset of the Great Recession,” the report cited. “In Denver, 99.5 percent of homes are worth more now than during the peak of the housing bubble.”In terms of overheating markets, the Dallas-Fort Worth Texas MSA is the second most overheated market in the U.S., and is 42 percent above its pre-recession peak, a ZHVI of $212,500 compared to a bubble peak of $149,600.“Home values are high, but affordability—while suffering a bit lately—is still okay, largely because of very low mortgage interest rates helping to keep monthly mortgage payments in check,” said Zillow Chief Economist Dr. Svenja Gudell. “The more pressing issue is abnormally low inventory, which is translating into an extremely competitive environment for home shoppers.”To see the full report, click here. Zillow 2017-08-24 Brianna Gilpincenter_img in Daily Dose, Data, Featured, News Sharelast_img

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