Zillow: Home Values Rise for 48th Straight Month
Zillow Inc., Seattle, said home values across the country rose for the 48th consecutive month, increasing by 5 percent over the past year to a median home value of $187,300.
The company’s July Home Value Index noted while home values have climbed consistently since August 2012, they remain nearly 5 percent below peak, in April 2007, when the median home value hit $196,600.
The report said Portland, Ore., Dallas, Denver and Seattle reported the highest year-over-year home value appreciation, with Portland home values rising nearly 15 percent to $334,900. Home values in Dallas and Denver appreciated 11.9 and 11.3 percent, respectively.
Zillow noted, however, that in notoriously expensive San Francisco, home values have been slowing down since the beginning of the year. In January, home values rose by nearly 12 percent year-over-year; in July, San Francisco home values are appreciating at half that pace, up 6.6 percent over the past year.
“The consistent rise in home values that we’ve been seeing for the past four years masks a number of region-specific trends that have taken place over the past few months,” said Zillow Chief Economist Svenja Gudell. “In most areas, the market is being driven mainly by a strong labor market and tight supply, especially among entry level homes that first time buyers are after. But some markets–especially the red-hot Pacific Northwest–are adding more jobs and attracting more residents, putting the pressure on home values and rents.”
Zillow said the Bay Area and southern California are still growing at a faster pace than the nation as a whole, but growth rates have come back to earth a bit after several years of rapid growth.
“All housing is local, and as the local economies in individual metros ebb and flow, housing will follow suit,” Gudell said. “More than at any time since the boom and bust, we’re seeing a housing market that is driven by local fundamentals, and not by national trends.”
Meanwhile, rents across the country rose 2 percent over the past year, to a Zillow Rent Index of $1,408, the 47th straight month of appreciation.
Of the 35 largest U.S. metros, Seattle, Portland and San Francisco reported the highest year-over-year rent appreciation. In Seattle, rents rose by nearly 10 percent to a median rent price of $2,052 per month, while rents in Portland rose just over 8 percent. In San Francisco, the median rent price rose to $3,407 per month, the second highest of all U.S. metros, right after San Jose, Calif. Rents in San Francisco appreciated by 6 percent over the past year.
