Home prices are skyrocketing, according to rental portal Zillow, with the average house currently 32% or $81,000 more valuable than in 2020 and 20.3% higher than 2021.
The economists at Zillow expect this trend to accelerate through the spring peaking at 22% year-over-year in May before slowing to 17.8% in February 2023. Demand is extremely strong with listed houses being bought within 11 days on average.
The most expensive city on Zillow’s home value index is San Jose, California, where an average home costs approximately $1.6 million , followed by San Francisco with an average home price of $1.4 million and the Los Angeles metro area at $900,000.
The average price of the American home is currently $332,000, according to Zillow and is expected to rise to 400,000 by February 2023.
The cheapest cities are Oklahoma City, Cleveland and Pittsburg with home prices just over $200,000.