The pace of home value increases are cooling. For most of the last two years, home value appreciation was accelerating. Year over year value appreciation peaked in April at 8.1% according to a study from Zillow.
Nationally, home values were up 6.5% at the end of the third quarter compared to one year earlier. The Zillow Value Forecast shows home values to increase only 3% at the end of the third quarter of 2015.
Likewise, inventories are becoming more stable with 18.6% more homes on the market than at the end of the third quarter in 2013.
In Seattle, the year over year increase in home values was 6.9% at the end of the third quarter in 2014 as compared to 12.9% at the end of the third quarter in 2013. The forecast shows Seattle is projected to see only a 5% increase in the year over year value by the end of the third quarter in 2015. There were nearly 25% more homes on the market at the end of September than there were at the end of September in 2013.
That should mean a less frenzied, more rational market for everyone.