US housing market up 5.9% year-on-year
New figures show the US property market grew 5.9% in 2012 – the largest year-on-year gain for six years.
And Zillow Home Value Forecast predicts residential home prices will rise again 3.3% in 2013.
The Zillow Home Value Index rose to $157,400 in the fourth quarter of last year, up 2.5% on the third quarter. It was fourth quarter in a row that prices have increased.
The company says the increase was double the rate typically associated with healthy markets.
Of the 30 largest cities covered by the index, only Cincinnati and Chicago failed to show annual and quarterly increases in the fourth quarter.
Of all the 366 metro areas analysed, 254 areas (69%) showed price rises in 2012 and 278 metros experienced quarter-over-quarter home value appreciation.
But annual property values varied widely in the 30 largest cities, from a 22.5% rise in Phoenix to a 0.2% fall in Cincinnati and Chicago.
Seven of the top 30 metros registered annual home value increases of 10% or more.
Zillow chief economist Stan Humphries, says, “We expected 2012 to be a good year for housing, and it delivered in spades. Strong demand paired with limited inventory in many markets helped fuel a robust and often rapid recovery in overall home values, good news for homeowners after years of poor performance.
“We expect this recovery to continue into 2013, but at a more sustainable pace.”
December’s foreclosure figures slowed to 5.22 of every 10,000 homes across America, down 2.2 homes per 10,000 year on year and 1.2 homes from the previous quarter. Foreclosure on re-sales represented 12% of the market, down 4% from the end of 2011 and down 0.3% from the third quarter.
National rents were $1,274 on average at the end of December, according to the Zillow Rent Index, down 0.6% over the third quarter, but up 4.2% year on year.