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U.S. Home Values Continue to Surge in August; Expected to Slow as Summer Selling Season Comes to a Close

Nearly 35% of Metros in the U.S. Saw Double-Digit Annual Appreciation, Which Will Begin to Level Out as Inventory Shortages Ease and Mortgage Rates Rise

Sep 23, 2013

SEATTLE, Sept. 23, 2013 /PRNewswire/ -- National home value appreciation continued to climb in August, up 0.4 percent from July to a Zillow® Home Value Indexi of $162,100, according to the August Zillow Real Estate Market Reportsii. Home values were up 6.6 percent annually in August, the largest gain since July 2006, when home values rose 7.9 percent year-over-year.

National home values have risen or remained flat month-over-month for almost two years, though the pace of monthly home value appreciation has slowed in recent months. August marked the third consecutive month in which monthly home values rose more slowly than the month prior.

A majority (85 percent) of the 382 metros covered in August experienced annual home value appreciation. Among the 30 largest metro areas covered by Zillow, 20 saw annual appreciation of 10 percent or more. Metros with notable annual increases in August include Sacramento (34.1 percent), Las Vegas (30.6 percent) and Riverside, Calif. (29.7 percent).

For the 12-month period from August 2013 to August 2014, U.S. home values are expected to rise another 5.2 percent, to approximately $170,500, according to the Zillow Home Value Forecastiii. Large metro areas expected to show the most appreciation over the next year include Riverside (21.9 percent), Sacramento (19.2 percent) and Los Angeles (13.2 percent).

"August marked the end of one of the hottest summer home shopping seasons in years, as home value appreciation rates continued their rocket ride upward – perhaps dangerously so in some metro areas," said Zillow Chief Economist Stan Humphries. "Double-digit appreciation rates do help to lift homeowners out of negative equity and to entice sellers into a low-inventory environment, but this rapid growth is not normal and cannot and should not be expected to last. We are already beginning to see moderation in the monthly pace of home value appreciation, which will be good for the market overall and in the long term."

National rents also rose in August compared with July, up 0.5 percent to a Zillow Rent Indexiv of $1,293. Year-over-year, national rents were up 1.9 percent in August.

The number of completed foreclosures in August fell to 5.17 homes foreclosed out of every 10,000 homes nationwide, down from 5.27 homes in July. Foreclosure resales represented 8.28 percent of homes sold in the U.S. in August, down 0.3 percentage points from July and 3.1 percentage points from August 2012.

 

Zillow Home Value Index (ZHVI)

Zillow Rent Index (ZRI)

Metropolitan Areas

August 2013 ZHVI

Month-Month % Change

Year-Year % Change

August 2013 ZRI

Month-Month % Change

Year-Year % Change

United States

$162,100

0.4%

6.6%

$1,293

0.5%

1.9%

New York, NY

$351,800

0.6%

3.3%

---

---

---

Los Angeles, CA

$483,200

1.7%

22.8%

$2,318

0.4%

1.6%

Chicago, IL

$169,700

1.2%

4.9%

$1,541

0.4%

0.8%

Philadelphia, PA

$189,600

0.0%

2.5%

$1,503

0.1%

0.7%

Washington, DC

$341,900

0.8%

8.9%

$2,089

0.4%

1.5%

Miami-Fort Lauderdale, FL

$170,200

1.5%

15.2%

$1,659

0.6%

4.0%

Atlanta, GA

$126,000

1.6%

13.3%

$1,138

0.4%

1.2%

Boston, MA

$341,200

1.2%

10.1%

$1,997

0.1%

3.5%

San Francisco, CA

$633,700

1.5%

28.1%

$2,555

0.3%

2.9%

Detroit, MI

$93,700

1.7%

20.3%

$1,044

0.7%

2.0%

Riverside, CA

$241,700

3.0%

29.7%

$1,586

0.2%

2.6%

Phoenix, AZ

$181,400

1.5%

20.9%

$1,145

0.0%

-0.4%

Seattle, WA

$305,900

1.4%

16.0%

$1,672

0.7%

3.8%

Minneapolis-St Paul, MN

$197,100

2.0%

16.3%

$1,463

0.4%

1.5%

San Diego, CA

$436,000

1.8%

23.7%

$2,149

0.2%

2.5%

St. Louis, MO

$128,300

-0.1%

1.7%

$1,091

1.0%

-1.4%

Tampa, FL

$127,000

1.7%

15.6%

$1,207

0.2%

2.8%

Baltimore, MD

$230,000

0.3%

6.0%

$1,683

0.4%

0.2%

Denver, CO

$248,600

1.3%

14.5%

$1,577

0.9%

5.6%

Pittsburgh, PA

$112,900

0.8%

4.6%

$1,005

1.2%

-2.0%

Portland, OR

$256,800

1.3%

15.8%

$1,433

0.5%

3.3%

Sacramento, CA

$279,600

2.0%

34.1%

$1,466

0.3%

0.3%

Orlando, FL

$143,000

1.8%

17.5%

$1,246

0.3%

3.8%

Cincinnati, OH

$127,700

0.7%

4.0%

$1,122

-0.9%

7.3%

Cleveland, OH

$115,100

0.3%

5.1%

$1,109

0.2%

3.3%

Las Vegas, NV

$156,600

2.8%

30.6%

$1,159

0.3%

0.9%

San Jose, CA

$734,500

0.9%

24.0%

$2,685

0.6%

3.8%

Columbus, OH

$132,200

0.4%

6.4%

$1,192

0.8%

3.4%

Charlotte, NC

$139,100

0.3%

2.9%

$1,144

0.0%

0.3%

Indianapolis, IN

$137,500

0.8%

10%

$1,155

0.2%

1.1%

About Zillow:
Zillow, Inc. (NASDAQ: Z) operates the largest home-related marketplaces on mobile and the Web, with a complementary portfolio of brands and products that help people find vital information about homes, and connect with the best local professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Stan Humphries. Dr. Humphries and his team of economists and data analysts produce extensive housing data and research covering more than 350 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. The Zillow, Inc. portfolio includes Zillow.com®, Zillow Mobile, Zillow Mortgage MarketplaceZillow Rentals, Zillow Digs™, Postlets®, Diverse Solutions®, Agentfolio™, Mortech®, HotPads™ and StreetEasy®. The company is headquartered in Seattle.

Zillow.com, Zillow, Postlets, Mortech, Diverse Solutions and StreetEasy are registered trademarks of Zillow, Inc. HotPads, Digs and Agentfolio are trademarks of Zillow, Inc.

i The Zillow Home Value Index is the median estimated home value for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. It is expressed in dollars, and seasonally adjusted.
ii The Zillow Real Estate Market Reports are a monthly overview of the national and local real estate markets. The reports are compiled by Zillow Real Estate Research. For more information, visit www.zillow.com/research/. The data in Zillow's Real Estate Market Reports is aggregated from public sources by a number of data providers for 929 metropolitan and micropolitan areas dating back to 1996. Mortgage and home loan data is typically recorded in each county and publicly available through a county recorder's office. All current monthly data at the national, state, metro, city, ZIP code and neighborhood level can be accessed at www.zillow.com/local-info/.
iii The Zillow Home Value Forecast uses data from past home value trends and current market conditions, including leading indicators like home sales, months of housing inventory supply and unemployment, to predict home values over the next 12 months for the nation and for more than 250 markets across the country.
iv The Zillow Rent Index is the median Rent Zestimate (estimated monthly rental price) for a given geographic area on a given day, and includes the value of all single-family residences, condominiums, cooperatives and apartments in Zillow's database, regardless of whether they are currently listed for rent. It is expressed in dollars.

SOURCE Zillow, Inc.

For further information: Camille Salama, Zillow, 206-757-2701 or press@zillow.com