Published at PropertyWire
National prices across the United States increased at their fastest annual pace since 2006, near the peak of the housing bubble, the latest index data shows.
Home values are 6.5% higher than in November 2015, according to the Zillow Home Value Index which reached $192,500, just 2% short of the records set in 2007.
However, rents, which were the big story of 2016 as they rose at a record pace, have slowed considerably with annual growth of 1.5% and this rate is expected to continue into 2017. The median monthly rent is now $1,403.
The Zillow report shows that strong growth is especially evident in a handful of new powerhouse markets, including Seattle, Denver, Portland and Dallas, whose strong job markets attracted new home buyers over the last year.
At their fastest pace, home values across the country were growing about 11% year on year. It is some way from when the housing bubble burst and home values plummeted, falling 7.4% year on year during the depths of the economic crisis and then beginning a steady recovery in 2012.
‘Home value growth continues to be strong, supported by solid buyer demand and still limited for-sale inventory in many markets across the country,’ said Zillow chief economist Svenja Gudell.
‘Conditions today are very different than the ones we saw back in 2006, which was the last time we saw home values rising this fast. Rampant real estate speculation and loose mortgage credit have been replaced by the sound economic fundamentals we are seeing now,’ she explained.
Portland, Seattle and Dallas reported the highest year on year home value appreciation among the 35 largest metros. Portland home values rose 14% to a median value of $351,800 and both Seattle and Dallas home values are up 12% since November 2015.
Seattle reported the fastest rent appreciation of the 35 largest metros for the sixth month in a row, up almost 9% while in Portland and Sacramento rents increased 7% year on year.
The Zillow report says that inventory still remains an issue for home buyers across the country as there are 6% fewer homes to choose from than a year ago, with Boston seeing supply drop by 26% and Indianapolis and Kansas City both down 21%. [Read More at PropertyWire…]