In December 2018, the median U.S. home appreciated 7.6% year over year in value, totaling $223,900, according to Zillow’s latest housing market report.

Notably, Zillow indicates December’s rate of appreciation is only slightly higher than December 2017’s percentage of 7.4%, signaling an overall slowdown in annual home value growth.

This latest data is yet another sign that home prices are appreciating at a slower rate.

“Locally, annual home value growth slowed between the end of 2017 and the end of 2018 in 19 of the nation’s 35 largest markets,” Zillow writes. “And in some cases, the slowdown was fairly dramatic – median home value growth slowed by 3 percentage points or more by the end of 2018 compared to the end of 2017 in five major markets.”

These five major markets experienced significant slowdowns in annual home value growth:

Seattle: Decreased 7.4%
San Jose: Decreased 6.9%
Philadelphia: Decreased 3.4%
Sacramento: Decreased 3.3%
Los Angeles: Decreased 3.1%

However, Zillow points out that although home value growth retreated in some markets, affordable Southern and Midwestern markets heated up in 2018.

According to Zillow’s analysis, home value growth accelerated year over year in December 2018 in 16 of the nation’s 35 largest markets, rising the most in Indianapolis.

These five major markets experienced significant appreciation in annual home value growth:

Indianapolis: Increased 6.8%
Atlanta: Increased 5.1%
Houston: Increased 2.9%
Charlotte: Increased 2.6%
Cincinnati: Increased 1.9%

Notably, as home value appreciation slowed down throughout last year, Zillow also highlights that housing inventory also experienced declines.

“Inventory fell slightly over the past year, down 0.4% since December 2017. This came after three consecutive months of gains in the number of homes for sale, suggesting that national sustained inventory growth is not here yet,” Zillow writes. “Still, several major markets that were starved for homes for sale are seeing big gains.”

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