Home Values Continue to Rise; May Marks Third Consecutive Month of Increases

by 20 Jun 2012

Phoenix Metro Approaches Double Digit Annual Appreciation, According to May Zillow Real Estate Market Reports

SEATTLE, June 20, 2012 /Zillow/ -- National home values rose for the third month in a row, climbing 0.5 percent from April to a Zillow® Home Value Index[i] of $148,100. While home values continued to decline on an annual basis, falling 0.9 percent from May 2011 to May 2012, this is the smallest year-over-year decline since October 2007, according to the May Zillow Real Estate Market Reports[ii].

National rents also rose from April to May, increasing 1.8 percent, according to the Zillow Rent Index[iii]. Rents rose on a monthly basis in 77 percent of the 344 markets covered by Zillow.

Home values continued their rapid increase in the Phoenix metro, rising 9 percent annually, and 1.9 percent from April to May. In the Miami-Fort Lauderdale metro, home values rose 5.2 percent year-over-year and 2.2 percent month-over-month.

"It is promising to see consecutive months of national home value increases, especially during a period in which we'd expected more downward pressure due to foreclosures," said Zillow Chief Economist Dr. Stan Humphries. "Attention has now shifted to the tug-of-war situation with inventory, where buyers want to buy but sellers don't want to – or can't – sell. This inventory phenomenon, due to both the broader issue of negative equity that is keeping people in their homes and to rational seller behavior at a market bottom, will make for a more volatile housing recovery than what we initially expected."

Foreclosures continued to decline in May, with 6.3 out of every 10,000 homes in the country being foreclosed. That was down from 7.2 out of every 10,000 in April.

Metropolitan Areas

Zillow Home Value Index

 

Zillow Rent Index

 

 

May 2012

YoY Change

May 2012

YoY Change

 

United States

$148,100

-0.9%

$1,252

+4.6%

 

New York

$335,700

-3.3%

$2,039

-

 

Los Angeles

$382,100

-3.9%

$2,245

+4.5%

 

Chicago

$158,300

-6.8%

$1,476

+9.1%

 

Dallas

$122,000

-0.4%

$1,282

+1.6%

 

Philadelphia

$184,200

-3.5%

$1,481

+13.1%

 

Washington

$305,000

+1.1%

$2,034

+6.8%

 

Miami-Fort   Lauderdale, Fla.

$146,900

+5.2%

$1,588

+3.8%

 

Atlanta

$107,200

-6.3%

$1,122

0.0%

 

Boston

$306,600

-1.4%

$1,884

+3.6%

 

San Francisco

$459,900

-2.2%

$2,437

+8.8%

 

Detroit

$74,300

+1.8%

$1,004

+5.8%

 

Riverside, Calif.

$180,900

-1.7%

$1,548

-0.6%

 

Phoenix

$133,400

+9.0%

$1,134

+0.1%

 

Seattle

$253,100

-2.1%

$1,600

+4.7%

 

Minneapolis-St.   Paul, Minn.

$163,900

-3.1%

$1,407

+8.3%

 

San Diego

$340,200

-1.5%

$2,072

0.0%

 

Tampa, Fla.

$106,900

+0.2%

$1,167

+2.2%

 

St. Louis

$122,100

-3.8%

$1,087

-2.2%

 

Baltimore

$213,400

-2.5%

$1,638

+10.4%

 

Denver

$209,700

+2.8%

$1,461

+3.6%

 

Pittsburgh

$108,200

+2.4%

$1,042

+10.0%

 

Portland, Ore.

$209,700

-0.9%

$1,367

+4.8%

 

Sacramento, Calif.

$201,200

-3.7%

$1,444

+2.7%

 

Orlando, Fla.

$116,900

-0.7%

$1,197

+3.9%

 

Cleveland

$107,700

-2.4%

$1,071

+4.6%

 
 

The full national report, in its interactive format, will be available at www.zillow.com/local-info at 8 a.m. ET on Wednesday, June 20. Additionally, in most areas, data is available at the state, metro, county, city, ZIP code and neighborhood levels. More market analysis of the monthly data can be found at www.zillow.com/research and a PDF of the Real Estate Market Report can be found at www.zillow.com/blog/research/data/.

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