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 email@example.com
May Home Value Appreciation Remains Strong, But Rising Inventory & Mortgage Rates Expected to Begin Slowing Gains
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