Zillow reports that U.S. home prices are continuing their steady climb in 2013 and have the annual gain is the largest seen since July 2006. The Zillow Home Value Index shows a 6.2% gain in December over the same month in the prior year and values swelled again in the first month of 2013, making January the fifteenth consecutive month of gains. All 30 metro areas that Zillow polled saw year-on-year gains and 27 of those had monthly increases, led by San Francisco, Tampa and San Diego. Experts expect the upward trend to continue as demand increases and foreclosure rates fall. For more on this continue reading the following article from Property Wire.
Home values in the United States began 2013 on a positive note, much the same way they ended 2012, and rose for the fifteenth consecutive month in January, the latest real estate market report shows.
In January home values were up 0.7% from December 2012 and 6.2% from the same time last year, according to the latest Zillow Home Value Index.
The 6.2% annual gain is the largest since July 2006, when home values rose 7.5% year in year. The last time national home values were at this level was in June 2004.
Of the nation's 30 largest metro areas covered by Zillow, 27 showed monthly home value appreciation. Metro areas with the largest monthly gains in January included San Francisco and Tampa both up 2%, San Diego up 1.8%, Riverside in California up 1.7% and Sacramento in California up 1.5%.
On an annual basis, all 30 of the nation's largest metro areas tracked by Zillow experienced year on year gains in January. Major markets where home values rose the most over January 2012 included Phoenix up 21.9%, San Francisco up 17.2%, San Jose up 16.8%, Las Vegas up 16.2% and Sacramento up 13.7%.
The firm said that because of seasonality, national rents fell slightly in January compared with December, down 0.2%, but year on year national rents were up 4.3% last month.
‘The winter months are typically when things cool off in the housing market, but high demand and continued tight inventory in many markets have helped keep things at a boil through the early part of 2013,’ said Zillow chief economist Stan Humphries.
‘Demand will continue to be high throughout 2013, which will help home values and rents alike continue to rise. Foreclosure activity remains high, despite recent drop offs. This will have the dual effects of nurturing rental demand, as displaced former home owners seek new lodgings, and of adding supply to many markets, as foreclosed properties re-enter the market,’ he added.
The data also shows that completed foreclosures slowed in January, falling to 5.54 homes foreclosed out of every 10,000 homes nationwide. That was down 0.8 homes over December and down 2.3 homes year on year.
This article was republished with permission from Property Wire.