Median U.S. Home is $12,500 More Valuable Today than a Year Ago

Homes in more than half of the nation’s largest metros gained more than $10,000 in value in the last year, said Zillow, Seattle.

The company’s monthly Housing Market Reports said nationally, home values rose by 6.5 percent over the past year to $203,400. The median-priced U.S. home is worth $12,500 more than it was a year ago.

Home values in booming West Coast markets have gained the most value over the past year. San Jose, Calif. home values rose by $118,200 over past year, while Seattle home values rose by $48,100.

The report said homes in more than half of the nation’s largest metros are currently worth more than they were prior to the onset of the Great Recession.

Rents, rose as well, Zillow said. The report said rents across the country rose by 2.2 percent year-over-year, to $1,432 per month. Rents in Sacramento, Calif. and Riverside, Calif. appreciated fastest.

Zillow Chief Economist Svenja Gudell said limited housing supply and heavy demand continue to play a role in driving up home prices. Zillow reported 11.7 percent fewer homes for sale in the U.S. than a year ago. Inventory has dropped most significantly in San Jose, San Francisco and San Diego over the past year. In San Jose, there are 60.4 percent fewer homes on the market than at this time last year. In San Francisco and San Diego there are 32 and 31 percent fewer homes fewer homes for sale, respectively.

“We are in the midst of an inventory crisis that shows no signs of waning, impacting potential buyers all across the country,” Gudell said. “Home values are growing at a historically fast pace, and those potential buyers want to get in the market while they still can.”

Gudell said buyers–especially first-time buyers–have to set aside more and more money for a down payment just to keep up with them. “Unfortunately, there’s just not enough homes for sale, and demand will continue to drive prices higher until we reach a better balance between supply and demand,” she said.