According to a recent report released by Zillow, home values showed a remarkable increase in the third quarter, but the growth is uneven across the various markets.
The Zillow Real Estate Market Reports show that, on a national basis, home values increased by 1.3 percent – the largest jump since March 2006. This is also the fourth consecutive quarter of gains.
However, many metropolitan areas showed decreases in the third quarter, as the home-buying season of the summer rolled to an end. In fact, 20 percent of the states covered under the Zillow report showed decreasing home values for the third quarter over the second.
For rental property management officials, the stunted growth of home values is both good and bad. On the one hand, extended price growth could leave many homeowners in the dust as the values outstrip their buying abilities, leading them back to the rental market. On the other hand, a slowed retail housing market generally means a slow rental market, which could mean fewer incoming rental applications for some property managers.