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

English: Photo taken by Bobak Ha'Eri. Taken Ju...

Category:Images of Los Angeles (Photo credit: Wikipedia)

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% 

Source: Zillow

Follow the Magazine:
https://businessleadershipmanagement.wordpress.com/subscribe-follow-the-magazine/
(After you have filled in your email address, a confirmation email will sent to your email address. You will have to confirm it before subscription begins)

Follow us on Twitter:
https://twitter.com/BusinessLeaders

Like us on Facebook:
https://www.facebook.com/BusinessLeadershipManagement

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s