With thirteen consecutive months of home value increases, the budding housing recovery finally looks to have gained some foothold as November marks the best yearly gain since 2006, according to Zillow’s Real Estate Market Reports.
Home values rose 5.2% compared to last November, what Zillow notes as the largest annual gain since August 2006, when values increased 6% year-over-year.
Compared to last month, home values for November increased 0.6% from October to a Zillow Home Value Index of $156,200. The last time home values reached this amount was May 2004, writes Zillow.
Adding to the growing optimism surrounding the market’s recovery, 26 of the nation’s largest metro areas also experienced year-over-year home value increases.
Some of the major markets where home values have increased over the past year, Zillow notes, include Phoenix (23.3%), San Jose, California (13.4%), San Francisco (12.1%), Las Vegas (11%) and Denver (10.8%).
“The housing market recovery we’ve been experiencing throughout 012 should continue on its own momentum into 2013,” said Dr. Stan Humphries, Zillow’s chief economist.”
The combination of tight inventory and a high demand, believes Humphries, has renewed consumer and investor interest in the market, thus helping home values rise in a number of metro areas.
“Looking forward, we expect this dynamic to continue, with the welcome result being more underwater borrowers released from negative equity as home values rise,” said Humphries.
Written by Jason Oliva