May Home Value Appreciation Remains Strong, But Rising Inventory & Mortgage Rates Expected to Begin Slowing Gains

 May Home Value Appreciation Remains Strong, But Rising Inventory & Mortgage
                    Rates Expected to Begin Slowing Gains

California, Southwest Metros Continue to Lead Nation in Annual Appreciation
Rates; Midwest, Mid-Atlantic Metros Lag Behind, According to Zillow

PR Newswire

SEATTLE, June 20, 2013

SEATTLE, June 20, 2013 /PRNewswire/ --National home values rose again in May,
climbing 0.5 percent from April to a Zillow® Home Value Index^i of $159,000,
according to the May Zillow Real Estate Market Reports^ii. Home values were up
5.4 percent year-over-year in May, the second-highest annual rate of national
appreciation registered in the past 12 months.

The 5.4 percent annual gain in May was exceeded in the past year only by
January's 5.6 percent year-over-year increase. Home values have risen or
remained flat month-over-month for 19 straight months. The last time home
values rose to approximately this level was July 2004.

A majority (50.8 percent) of the 360 metros covered experienced home value
appreciation between April and May. Among the 30 largest metro areas covered
by Zillow, Sacramento experienced the largest monthly increase, with values
rising 1.7 percent. Other large metro areas with notable monthly increases
include Las Vegas (1.3 percent) and Los Angeles (1 percent).

For the 12-month period from May 2013 to May 2014, U.S. home values are
expected to rise 4.1 percent to approximately $165,448, according to the
Zillow Home Value Forecast^iii. The pace of home value appreciation nationwide
and in many local markets is expected to moderate as more sellers enter the
market and builders begin construction on more new homes, helping ease the
supply crunch that has so far contributed heavily to rapid home value
appreciation.

"Enjoy it while it lasts, because the housing market will undoubtedly look
very different a few years down the road from how it appears now. Inventory
constraints are beginning to ease in many areas as more listings and new homes
come on line, which will ultimately help end this period of rapid annual home
value appreciation above 5 percent. Additionally, as interest rates begin to
rise from their historic lows, some demand may also ebb from the market as
home purchases become more expensive to finance," said Zillow Chief Economist
Dr. Stan Humphries. "While we believe the housing recovery will remain strong,
home value appreciation will slow down, and buyers in it for the short term
could get burned if they assume home values will continue rising as they have
unabated. A home should always be looked at as a longer-term purchase, which
will help cushion homeowners against volatile short-term swings in value."

Of the nation's 30 largest metro areas covered by Zillow, 29 experienced
year-over-year home value increases in May, with half up by double-digit
percentages. Major markets where home values increased the most over the past
year include Las Vegas (28 percent), Sacramento, Calif. (26.1 percent), San
Francisco (24.2 percent), San Jose, Calif. (21.8 percent) and Phoenix (21.3
percent). St. Louis was the only metro area in the top 30 where home values
declined year-over-year.

National rents declined slightly in May compared with April, down 0.1 percent
to a Zillow Rent Index^iv of $1,286. Year-over-year, national rents were up
2.6 percent in May.

The number of completed home foreclosures in May fell to 5.01 homes foreclosed
out of every 10,000 homes nationwide, down 0.4 homes per 10,000 from April and
1.4 homes per 10,000 from May 2012. This is the lowest monthly level of
foreclosure liquidations since October 2007. Foreclosure resales represented
10.7 percent of homes sold in May, down 1.1 percentage points from April and
3.8 percentage points from May 2012.

                   Zillow Home Value Index (ZHVI) Zillow Rent Index (ZRI)
                   May 2013 Month-Month Year-Year May    Month-Month Year-Year
Metropolitan Areas ZHVI     % Change    % Change  2013   % Change    % Change
                                                  ZRI
United States      $       0.5%        5.4%      $     -0.1%       2.6%
                   159,000                        1,286
New York, NY       $       0.2%        1.6%      --     --          --
                   346,300
Los Angeles, CA    $       1.0%        18.0%     $     0.0%        2.2%
                   455,600                        2,307
Chicago, IL        $       0.3%        0.1%      $     0.5%        3.3%
                   162,000                        1,535
Dallas-Fort Worth, $       0.9%        6.8%      $     0.1%        4.3%
TX                 135,400                        1,344
Philadelphia, PA   $       -0.1%       1.5%      $     0.1%        0.3%
                   188,400                        1,494
Washington, DC     $       0.1%        6.3%      $     0.0%        2.4%
                   331,600                        2,083
Miami-Fort         $       0.7%        13.3%     $     0.1%        2.8%
Lauderdale, FL     162,900                        1,626
Atlanta, GA        $       0.0%        4.7%      $     -0.3%       1.0%
                   118,800                        1,138
Boston, MA         $       0.2%        5.4%      $     0.0%        5.0%
                   326,200                        1,992
San Francisco, CA  $       1.0%        24.2%     $     -0.2%       4.1%
                   590,600                        2,555
Detroit, MI        $      0.6%        13.8%     $     -0.3%       -0.4%
                   87,400                         1,022
Riverside, CA      $       0.8%        18.7%     $     -0.1%       2.4%
                   216,800                        1,581
Phoenix, AZ        $       0.8%        21.3%     $     -0.5%       2.3%
                   170,500                        1,161
Seattle, WA        $       0.6%        11.8%     $     0.4%        3.3%
                   289,100                        1,652
Minneapolis-St     $       0.8%        11.0%     $     -0.3%       3.7%
Paul, MN           185,300                        1,469
San Diego, CA      $       0.8%        19.9%     $     0.1%        2.7%
                   410,200                        2,128
St. Louis, MO      $       -0.8%       -0.7%     $     -0.8%       0.4%
                   125,300                        1,086
Tampa, FL          $       -0.2%       9.5%      $     0.0%        2.9%
                   119,200                        1,200
Baltimore, MD      $       0.0%        2.2%      $     0.0%        2.1%
                   223,000                        1,681
Denver, CO         $       0.3%        12.8%     $     0.0%        7.6%
                   237,900                        1,566
Pittsburgh, PA     $       -0.4%       2.5%      $     0.1%        -0.9%
                   111,800                        1,017
Portland, OR       $       0.6%        12.0%     $     0.0%        4.8%
                   243,200                        1,428
Sacramento, CA     $       1.7%        26.1%     $     -0.5%       1.2%
                   255,800                        1,465
Orlando, FL        $       0.2%        10.2%     $     0.5%        3.2%
                   133,100                        1,234
Cincinnati, OH     $       -0.6%       0.4%      $     1.8%        6.2%
                   123,500                        1,110
Cleveland, OH      $       0.2%        2.4%      $     -0.3%       3.0%
                   112,600                        1,113
Las Vegas, NV      $       1.3%        28.0%     $     0.2%        0.4%
                   146,400                        1,153
San Jose, CA       $       -0.2%       21.8%     $     -0.2%       3.5%
                   695,300                        2,655
Columbus, OH       $       0.3%        4.0%      $     -0.5%       1.5%
                   128,900                        1,182
Charlotte, NC      $       -0.1%       1.6%      $     -0.3%       3.1%
                   136,800                        1,156

About Zillow:
Zillow, Inc. (NASDAQ: Z) operates the largest home-related marketplaces on
mobile and the Web, with a complementary portfolio of brands and products that
help people find vital information about homes, and connect with the best
local professionals. In addition, Zillow operates an industry-leading
economics and analytics bureau led by Zillow's Chief Economist Dr. Stan
Humphries. Dr. Humphries and his team of economists and data analysts produce
extensive housing data and research covering more than 350 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. The Zillow, Inc. portfolio
includesZillow.com®,Zillow Mobile, Zillow Mortgage Marketplace,Zillow
Rentals, Zillow Digs™, Postlets®, Diverse Solutions®, Mortech™, HotPads™ and
Agentfolio™. The company is headquartered in Seattle.

Zillow.com, Zillow, Zestimate, Postlets and Diverse Solutions are registered
trademarks of Zillow, Inc. Mortech, HotPads, Digs and Agentfolio are
trademarks of Zillow, Inc.

^i The Zillow Home Value Index 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.
^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 is aggregated from public
sources by a number of data providers for 929 metropolitan and micropolitan
areas dating back to 1996. Mortgage and home loan data is 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/.
^iii The Zillow Home Value Forecast uses data from past home value trends and
current market conditions, including leading indicators like home sales,
months of housing inventory supply and unemployment, to predict home values
over the next 12 months for the nation and for more than 250 markets across
the country.
^iv The Zillow Rent Index 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.

SOURCE Zillow, Inc.

Website: http://www.zillow.com
Contact: Cory Hopkins, Zillow, 206-757-2701 or press@zillow.com
 
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