Annual Home Values Rise 6.2 Percent Nationwide in January

Zillow’s release of our January Real Estate Market Report indicates national home values rose to $158,100, up 0.7 percent from December. This rise marks the 15th consecutive month of national home value gains, indicating a resilient housing market. Home values grew 6.2 percent year-over-year, the largest annual gain since July 2006 (7.5 percent).

Annual home value appreciation was widespread last month, with gains in all of the 30 largest metro markets covered by Zillow. One-third of the top 30 metros boasted annual appreciation rates above 10 percent, led by Phoenix (21.9 percent), San Francisco (17.2 percent) and San Jose (16.8 percent). Los Angeles, with a 9.7 percent annual appreciation rate, just missed the cut. Monthly home value gains in January were measured in 27 of the top 30 metros. St. Louis and Orlando depreciated, while Baltimore remained flat.

Rent values fell slightly in January from December, likely because of seasonality. Still, national rents rose 4.3 percent year-over-year, with significant annual appreciation in Denver (7.5 percent), Boston (6.3 percent) and Charlotte, N.C. (6.3 percent). The rental market is expected to remain strong in 2013 as a persistently high foreclosure rate continues to create renters out of foreclosed homeowners.

The takeaway from January’s report is that the housing market recovery that emerged in 2012 proved durable and will continue with significant momentum into 2013. Zillow’s Home Value Forecast anticipates further national home value appreciation of 3.3 percent for January 2013 to January 2014.

More insight on January’s Real Estate Market Report is available at www.zillow.com/research.

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