The typical U.S. home is now worth more than $200,000 for the first time in history, according to the June Zillow market report.
The national median home value now sits at $200,400. This number is a notable 7.4-percent increase from what it was in 2016. The country has also seen a continuous rise in national average rent, which jumped 1.1 percent year-over-year.
There are now 11 percent less homes for sale in America than there were last year. According to the report, a surge in buyer demand coupled with this major drop in inventory has been causing property values to soar recently.
“The national housing market remains red hot and shows no signs of slowing, even as some local markets like the Bay Area have noticeably cooled,” Zillow Chief Economist Dr. Svenja Gudell said. “But even in areas where the housing market has slowed, home values are at or very near peak levels, selection is limited, demand is high and competition is fierce.”
Gudell advises potential buyers to be honest with themselves about they can and can’t afford, as well as get in touch with an agent who has experience with bidding wars. In today’s market, it can be incredibly difficult to stand out amongst the steep completion.
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