The U.S. housing market appears to be cooling off and that’s not a bad thing, according to Zillow CEO Spencer Rascoff.
Rascoff expects home values to appreciate by about 3% in 2014, lower than the 5% appreciation rate homes had been seeing over the past year or so.
“The fact that the housing market is starting to slow down" means the recovery is sustainable, he says. "We had bounced too far off the bottom too quickly and so this slowdown is okay."
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The real estate market, of course, is a bifurcated story. According to Rascoff, appreciation in Las Vegas is up 33% year-over-year. California, New Mexico, Nevada and Arizona have also seen home prices appreciate by more than 20% year-over-year.
Washington D.C., Chicago and Philadelphia, however, have all seen home values drop year-over-year.
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“These markets are starting to find their own