US Real Estate: Home Prices Recover

 
on August 21 2012 6:38 PM

Rents Also Increase, Rising 0.2% from June to July, According to July Zillow Real Estate Market Reports

Home values continued to climb in July, increasing 0.5 percent from June to a Zillow® Home Value Index[i] of $151,600, according to the July Zillow Real Estate Market Reports[ii]. Home values were up 1.2 percent year-over-year.

Most (62 percent) of the metros covered in the reports saw home values climb during the month, with only 49 of the 167 metro areas experiencing declines. Of the 30 largest metro areas covered, the Phoenix metro area experienced the largest monthly increase, with home values rising 2.2 percent. Other large metro areas with notable monthly increases include the San Francisco metro (1.2 percent) and the Denver metro (1 percent).

U.S. rents continued to rise, climbing 0.2 percent month-over-month and 5.4 percent year-over-year to a Zillow Rent Index[iii] of $1,278. Nationally, rents have increased in 6 out of the past 12 months, with most metros (70 percent) experiencing rent increases from June to July.

Rents have experienced double-digit, annual increases in several large metro areas where home values continue to decline, including Chicago (12.6 percent), Providence, R.I. (12.1 percent) and Baltimore (11.9 percent). This is likely due to both continued high foreclosure levels in these markets, which increases rental demand, as well as consumer reluctance to buy when home values continue to fall.

"This summer, the housing market continued to heal, as home values experienced their eighth consecutive month of increases," said Zillow Chief Economist Dr. Stan Humphries. "Tight inventory levels are leading to bidding wars and multiple offers across the country. Looking ahead, we expect to see less aggressive increases in the fall as rising values lift some would-be sellers out of negative equity, allowing them to place their homes on the market."

Foreclosures continued to decline in July, with 5.7 out of every 10,000 homes in the country being foreclosed. That was down from 6.5 out of every 10,000 homes in June.

Metropolitan Areas
Zillow Home Value Index
Zillow Rent Index
 

July 2012
YoY Change
July 2012
YoY Change
 

United States
$151,600
1.2%
$1,278
5.4%
 

New York
$340,600
-3.1%
-
-
 

Los Angeles
$387,300
-1.7%
$2,289
5.6%
 

Chicago
$161,700
-5.8%
$1,532
12.6%
 

Dallas
$126,500
1.0%
$1,320
3.3%
 

Philadelphia
$184,900
-3.7%
$1,495
11.7%
 

Washington DC
$312,300
1.4%
$2,076
7.3%
 

Miami-Fort Lauderdale, Fla.
$145,600
3.8%
$1,594
4.5%
 

Atlanta
$113,500
-4.1%
$1,143
-0.4%
 

Boston
$310,400
0.4%
$1,951
4.5%
 

San Francisco
$479,900
2.6%
$2,475
8.8%
 

Detroit
$77,400
4.0%
$1,034
6.4%
 

Riverside, Calif.
$183,700
0.1%
$1,547
-1.1%
 

Phoenix
$140,500
13.4%
$1,155
1.0%
 

Seattle
$259,800
0.0%
$1,629
4.4%
 

Minneapolis-St. Paul, Minn.
$168,100
0.1%
$1,457
8.7%
 

San Diego
$344,200
-0.6%
$2,092
0.4%
 

Tampa, Fla.
$108,500
-0.2%
$1,179
2.5%
 

St. Louis
$123,900
-4.5%
$1,129
0.9%
 

Baltimore
$217,300
-1.3%
$1,684
11.9%
 

Denver
$212,600
4.9%
$1,505
6.1%
 

Pittsburgh
$109,300
2.3%
$1,066
11.7%
 

Portland, Ore.
$218,900
1.9%
$1,401
5.3%
 

Sacramento, Calif.
$204,000
-1.5%
$1,478
5.0%
 

Orlando, Fla.
$121,400
-0.1%
$1,212
3.4%
 

Cleveland
$109,900
-2.3%
$1,082
1.8%
 

 
 

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Shayne Heffernan

 Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.

Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reached a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.Read the Terms of Service 

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