Drop in home values not unexpected

Zillow Published:

By Cheryl Reid-Simons

Home values in Aurora dropped 1.6 percent in October, according to Zillow, mirroring the national trend.

For the second month in a row, home values fell nationwide in October, marking the first consecutive monthly drop in two years, according to the Zillow Real Estate Market Reports. Home values nationwide rose 5.2 percent year-over-year at a much slower pace than annual appreciation rates in the 7 percent range experienced during the summer.

But the cooling trend in the market is probably just a normal response to the super-heated summer, Zillow Chief Economist Stan Humphries said.

The annual appreciation rates of 6 to 7 percent “was great while it lasted, but we knew it would not continue indefinitely,” Humphries said. “The slowdown we’ve seen these past few months was expected and is largely welcome news for a market still struggling to find its natural balance.”

Real estate agent Jeff Hunt said it’s normal for the market to cool along with the temperatures, but the market fundamentals are good.

“I’ve been selling real estate for 37 years and right now when I talk to my agents on the street, everyone’s lamenting the shortage of inventory,” Hunt said.

Hunt said while Aurora has always been a desirable place to live, like the rest of the state, it simply doesn’t command the high prices of some major metros.

“You get a great value here,” he said.

Some parts of the country managed to chalk up gains in October, like Worcester, Mass., near Boston which saw a home value gain of 0.1 percent month over month. But Hunt says he’s comfortable watching the Ohio markets respond in the predictable, seasonal way they have.

“If the house is fairly priced, it will sell in a short period of time, even in the winter,” Hunt said.

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