Zillow recently released its Q1 2016 Market Report, noting that inventory across the nation has dropped almost 6 percent annually, with over 10 percent decreases in both bottom and middle-tier homes. The real estate website estimates the national Zillow Home Value Index (ZHVI) at $186,200 in the first quarter of 2016.
Other significant findings from the report include:
- There are 5.9 percent fewer homes for sale in the U.S. than a year ago.
- There are 10.4 percent fewer entry-level homes for sale in the U.S. than a year ago.
- Low supply is driving up home prices among entry-level homes, which are often sought after by first-time buyers.
- National home values rose 4.8 percent to $186,200, according to the first quarter Real Estate Market Reports. Rents rose 2.6 percent to $1,389.
Although its top-tier sector increased 2 percent in inventory in the first quarter of 2016, Chicago saw quite a dip in bottom and middle-tier inventory, with each losing 14.2 percent and 10.5 percent during the span.
Chicago saw small increases in home values across the board in the first quarter, with bottom, middle and top-tier homes increasing 0.7 percent, 3.1 percent and 1 percent, respectively.
With an average ZHVI of $193,800, Chicago’s home values might not reach those of Los Angeles, New York or San Francisco, but it still remains more than $5,000 over the national average.
