SEATTLE, March 25, 2016 /PRNewswire/ -- Homes were worth more than ever before in 26 percent of U.S. housing marketsⁱ, indicating those markets are close to a full recovery, according to the February Zillow® Real Estate Market Reportsⁱⁱ.

Over the past year, housing markets in the South, especially Texas and Tennessee, have joined Western housing markets blowing past their previous median home value highs. Dallas home values set a new record at $180,700 in February, up 13.7 percent from last February. Louisville, KY values rose 13.2 percent to $146,100, and Nashville home values rose 9.5 percent to a median of $189,100.

The national Zillow Home Value Indexⁱⁱⁱ was $184,600 in February, 5.9 percent below the record median home value set in mid-2007.

The record-high prices, combined with low inventory, make it difficult to buy a home in many markets, especially for renters trying to save for a down payment amongst historically high rental costs.

Median home values in hot Western markets such as Denver and San Jose continued to zoom past previous highs with double-digit growth, but other markets have more quietly surpassed their previous peaks and continue to grow.

Many experts surveyed in the November 2015 Zillow Home Price Expectations Survey^iv said they are concerned homes in San Francisco, Seattle, San Diego, and Los Angeles are overvalued and approaching bubble conditions.

"These new records mean we're no longer making up ground lost during the housing recession --we're laying a new path forward, based on demand for housing and economic growth throughout the economy" said Zillow Chief Economist Dr. Svenja Gudell. "In some markets, these new highs are a return to normalcy. The fact that other markets are still off by double digits may not mean those markets are far from being recovered. It just highlights how extraordinarily inflated home values had been during the housing bubble." 

The Zillow Rent Index^v continued to rise in February, but at a slower rate, as new construction provided much-needed supply to rental markets. Of the top 35 metros, only San Francisco saw double digit rent appreciation, on an annual basis, at 10.5 percent.

Rents are rising at 2.6 percent year-over-year, which is in-line with income growth expectations for the year. The Zillow Rent Forecast^vi indicates rent will continue to slow significantly over the next year.

About Zillow

Zillow® is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 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. Zillow also sponsors the biannual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ: Z and ZG), and headquartered in Seattle.

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ⁱ These markets reached new peak levels during 2015 or 2016.

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 are aggregated from public sources by a number of data providers for 928 metropolitan and micropolitan areas dating back to 1996. Mortgage and home loan data are 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/ and www.zillow.com/research/data.

ⁱⁱⁱ The Zillow Home Value Index (ZHVI) 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.

^iv This edition of the Zillow Home Price Expectations Survey surveyed 108 experts between November 5th and November 23^rd, 2015 about their expectations for the housing market. The survey was conducted by Pulsenomics LLC on behalf of Zillow, Inc.

^v The Zillow Rent Index (ZRI) 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.

^vi The Zillow Rent Index forecast is based on recent and historical trends in rents, and is calculated using ARIMA times series models. It is adjusted to account for seasonality and geographic consistency.

SOURCE Zillow