|Average Home Price||$120,576||$190,244||$186,410|
|Average Home Price/sq ft||$65||$113||$106|
|% New Listings||15%||12%||10%|
|% Reduced Listings||38%||37%||29%|
|% Foreclosed Listings||0%||3%||1%|
|% of All Homes For Sale||2%||2%||2%|
|% of All Homes Sold (Last 6 months)||2%||2%||1%|
|Average Sale Price||$102,304||$232,033||$283,383|
|Average Sale Price/sq ft||$60||$136||$151|
Highlights of US Housing Market Report
Zillow’s second quarter Housing Market Reports, show home values increased 2.4% from the first quarter of 2013 to the second quarter of 2013 to $161,100 (Figure 1). This quarter marks the largest annual gain since August 2006 and largest quarterly gain since the fourth quarter of 2005. On an annual basis, the Zillow Home Value Index (ZHVI) rose 5.8% from June 2012 levels (Figure 2). Monthly appreciation remains strong with national home values growing by 0.9% from May. Not only did the pace of home value appreciation quicken in the second quarter, but the recovery also fully took hold nationwide. Markets in some areas of the Northeast, Midwest and Southeastern U.S., such as Atlanta, Chicago and St. Louis, that had previously been slow to turn the corner began to appreciate, which helped boost the overall national market. All of the top 30 largest metro areas covered by Zillow experienced annual appreciation in home values as of the end of the second quarter, and all have hit their bottom.
According to the Zillow Home Value Forecast (ZHVF), we expect national home values to increase 5% over the next year (June 2013 to June 2014). Of the 257 markets covered by the Zillow Home Value Forecast, 241 markets are expected to see increases in home values over the next year, with the largest increases expected in the Sacramento metro (18.9%) and the Riverside metro (16.6%). Many California markets follow closely at the top of the list of markets expected to see the highest home value appreciation over the next year. According to the ZHVF, 234 markets (91%) have already hit a bottom in home values, and another 13 are expected to hit a bottom by June 2014.
The Zillow Real Estate Market Reports cover 389 metropolitan and micropolitan areas (metros) of which 259 showed quarterly home value appreciation. Three metros remained flat, while 127 metros show home values losses. Approximately 72% of the metros covered by the Real Estate Market Reports posted annual increases in home values – a sign of the national housing recovery continuing to take hold. Among the largest metros, Sacramento showed the largest annual increase with home values rising 29.5% from the second quarter of 2012 to the second quarter of 2013. We do believe that appreciation rates will return to more sustainable levels over the next year or two. Overall, national home values are back to August 2004 levels, down 17.2% since their peak in May 2007. A table of the top 30 metros can be found at the end of this report.
Housing Market Highlights
- National home values rose 2.4% from the first to the second quarter. This quarter marks five consecutive quarters of national home value appreciation.
- Of the 257 markets covered by the Zillow Home Value Forecast, 241 markets are expected to see increases in home values over the next year, with the largest increases expected in the Sacramento metro (18.9%) and the Riverside metro (16.6%).
- Approximately 72% of the metros covered by the Real Estate Market Reports posted annual increases in home values – a sign of the national housing recovery continuing to take hold.The Zillow Rent Index (ZRI) covers 496 metro areas, and 57% of those metros reported annual increases in rents in June. Nationally, rents increased 1.6% in June from year-ago levels, denoting a slowing. This is a significant annual decline in the rental appreciation rate from its peak appreciation of 6.2% nationally in September 2012.
- In some overheated markets, rapid home value increases coupled with rising mortgage rates will lead to housing prices and financing costs outpacing local income growth, which will also contribute to a moderation of the market. The U.S. housing market as a whole is currently not experiencing a bubble, but in many places it may feel like one, with some markets (Sacramento, Las Vegas, San Francisco) experiencing annual home value appreciation approaching 30 percent.