RISMedia's Real Estate Magazine

FEB 2018

Real Estate magazine is the industry's leading source for real estate news and information since 1980. Published monthly by RISMedia, Real Estate magazine offers timely and relevant real estate news to the industry's top brokers and agents.

Issue link: http://remag.rismedia.com/i/930707

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Page 93 of 110

RISMedia's REAL ESTATE February 2018 89 2017 WAS A BANNER YEAR FOR REAL ESTATE. Another $2 trillion was added to the housing market in 2017, brought to a collective $31.8 trillion, according to a recently released report by Zil- low. On an annual basis, home val- ues increased 6.5 percent last year; values last expanded at a faster pace—8 percent—in 2013. The additional $2 trillion, put an- other way, doubles Apple's recent $900 billion valuation. "This was a record year for home values, as the national housing stock reached record heights in 2017," says Aaron Terrazas, senior economist at Zillow. "Strong demand from buyers and the ongoing inven- tory shortage keep pushing values higher, especially in some of the na- tion's booming coastal markets." Los Angeles, New York and San Francisco were the most valuable major markets last year, at $2.7 tril- lion, $2.6 trillion and $1.4 trillion, respectively. No other exceeded $1 trillion. Columbus, Ohio, grew at the quickest pace, 15.1 percent, fol- lowed by San Jose, Calif., at 13.5 percent, Dallas-Fort Worth, Texas, at 12.3 percent, Seattle, Wash., at 11.7 percent, and Tampa, Fla., at 11.3 percent. More than $485 billion, mean- while, was spent on rent in 2017, the report shows. The figure is a 1 percent, or $4.9 billion, increase from 2016. "Renters spent more than ever on rent in 2017, but the amount they spent grew at the slowest pace in recent years as more renters tran- sitioned into homeownership and new rental supply slowed rent growth across the country," says Terrazas. According to Terrazas, housing this year is likely to maintain the status quo, even with changes to the tax code. "Despite recent changes to fed- eral tax laws that have historically made homeownership financially attractive, the long-term dynamics pushing up home values and rents are unlikely to change significantly in 2018," says Terrazas. RE For more information, please visit www.zillow.com. Gains in Housing Now Make It Worth $31.8 Trillion by Suzanne De Vita

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