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U.S. home-value growth continues to slow, according to the July Zillow Real Estate Market Report, with the rate of annual home-value appreciation decreasing for the seventh straight month.

The typical U.S. home is worth $229,000, up 5.2 percent from a year ago – the smallest annual appreciation since October 2015. Last year at this time, home values rose 7.7 percent year-over-year.

Still, home values are up 0.3 percent month-over-month, an indication that values are stabilizing after a period of relatively extreme growth rather than headed for a sustained downturn.

Among the 50 largest U.S. markets, home values have grown the most in Salt Lake City (up 9.4 percent since July 2018), Indianapolis (up 8.1 percent) and Charlotte (up 7.3 percent), although growth is slowing in each of these metros.

Only New Orleans, Birmingham and Oklahoma City saw home values appreciate at a greater rate than a year ago.

Home values have fallen year-over-year in California’s San Francisco Bay Area, home to the two most expensive markets in the country.

The value of the typical home fell 10.5 percent in San Jose and 1.1 percent in San Francisco. A year ago, home values were growing 24 percent annually in San Jose.

“As talk builds of a potential recession in the next year or two, housing remains fairly stalwart,” said Zillow director of economic research Skylar Olsen.

“The slowing appreciation is ultimately a good sign that the market is adjusting in response to the growing unaffordability of down payments, while low mortgage rates are keeping those with the required savings interested despite softer growth out the gate,” Olsen said.

Inventory grew 1.3 percent annually, reversing four straight months of declines. There are 19,978 more homes for sale than this time last year. New listings drove the inventory growth in July, up 5.7 percent from a year ago.

Mortgage rates listed on Zillow fell lower in July.

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