Zillow Home Value Index: 'Real' Home Values Hit 5-Year Low

June's Zillow Home Value Index came in at $372,995, down 0.07% from May and up 0.84% from a year ago. Adjusted for inflation, the index is at its lowest since 2019, the ZHVI data show.

Consumer price inflation has run hotter over the same period. The modest nominal gain has been erased by rising costs, leaving real home values stuck at levels not seen in five years. The 0.84% annual increase is the smallest in the index's record when measured against the trailing twelve months, Zillow said.

The slowdown in price growth reflects higher mortgage rates, which have cooled demand even as supply remains tight. The data point to a market where nominal stability masks a steady erosion of purchasing power for homeowners.