Home sellers still have the upper hand over buyers, Zillow report shows

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Homes sellers have expanded their advantage over buyers, as monthly growth in home prices accelerated at the fastest pace in eight years, according to real estate services company Zillow Group Inc.’s Real Estate Market Report, but the pace of home price increases could slow over the next year. Month-over-month growth in home values increased to 0.48% in July from 0.4% in June, the biggest one-month acceleration since May 2012, as there was growth in each of the top 50 metro areas in the U.S., bolstered by the continued inventory shortage. The price of a typical home was $253,527 in July, which is up 4.5% from a year ago. As of the week ending Aug. 15, inventory fell 28.4% from last year. Zillow expects year-over-year growth to slow to 3.6% over the next 12 months. “While the housing market has so far sailed through the headwind of high unemployment, risks remain,” said Zillow Economist Jeff Tucker. “A slow economic recovery that keeps millions of Americans looking for work could dampen home buying demand and may even lead to a wave of foreclosures when forbearance expires. This pessimistic possible outcome for 2021 has caused Zillow’s price forecast to shade down a bit.” Zillow’s Class C shares, which fell 1.0% in premarket trading Friday, has soared 80.3% year to date through Thursday, while the S&P 500 has gained 4.8%.
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