Share this article!

There were fewer options for would-be home buyers on the market at the end of 2021 than any time in recent memory, according to Zillow’s December 2021 Market Report. And the limited supply seems to have reignited home price appreciation, as monthly home price growth accelerated in December for the first time since July.

The Zillow Home Value Index (ZHVI) rose 1.4% in December from November, to $320,662, up 19.6% from December 2020. The annual growth rate represents an all-time high in data dating back more than 20 years – and after falling in each month since peaking at 2% in July, the monthly pace re-accelerated from 1.2% between October-November. If monthly price growth holds steady at December’s pace, that would translate to an annual growth rate of 17.7%.