November Home Value Appreciation Remains Strong, Expected to Slow During 2014

- U.S. home values rose 0.6 percent from October and 7.1 percent year-over-year in November.

- Nationally, home values are expected to rise another 4.6 percent over the next 12 months.

- Nearly 90 percent of metros analyzed showed annual appreciation.

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Dec 20, 2013, 08:00 ET

SEATTLE, Dec. 20, 2013 /PRNewswire/ -- National home values continued to rise in November, increasing 0.6 percent from October to a Zillow® Home Value Index[i] of $168,900, according to the November Zillow Real Estate Market Reports[ii]. Home values were up 7.1 percent year-over-year, reflecting a continued slowdown from the summer selling season, when annual home value appreciation peaked at 7.3 percent.

A majority (77.1 percent) of the metros covered in the reports experienced home value appreciation between October and November, with only 95 of the 485 metro areas, or 19.6 percent, experiencing declines. On an annual basis, 88 percent of metros experienced home value appreciation.

Among the 35 largest metro areas covered by Zillow, 34 experienced year-over-year home value increases in November, with nearly half up by double-digit percentages. Major markets where home values increased the most over the past year include Las Vegas (30.9 percent), Riverside (29.2 percent) and Sacramento (25 percent). St. Louis was the only metro area in the top 35 where home values declined year-over-year.

For the 12-month period from November 2013 to November 2014, national home values are expected to rise another 4.6 percent to approximately $176,731, according to the Zillow Home Value Forecast[iii]. Large metro areas expected to show the most appreciation over the next year include Riverside (18.6 percent), Sacramento (11.9 percent) and Las Vegas (10.4 percent).

"The pace of home value appreciation has leveled off and is beginning to slow down, after peaking this summer. Much of this year's rapid growth in home values can be attributed to very strong demand, as low mortgage interest rates, relatively low home prices and a slowly improving economy helped draw buyers into the market," said Zillow Chief Economist Dr. Stan Humphries. "Those dynamics are now giving way to more moderating influences, including rising mortgage interest rates, flagging investor demand and slowly increasing for-sale inventory. This slowdown in home value appreciation will contribute to a more balanced market, and will help to ease some emerging affordability problems in a handful of very hot markets, particularly in California."

National rents rose in November from October, up 0.3 percent to a Zillow Rent Index[iv] of $1,297. Year-over-year, national rents were up 2 percent in November.

The number of completed foreclosures in November fell to 5.09 homes foreclosed out of every 10,000 homes nationwide, down from 5.45 homes in September. Foreclosure re-sales represented 8.9 percent of homes sold in the U.S. in November, up 0.4 percentage points from September but down 1.4 percentage points from November 2012.

	Zillow Home Value Index (ZHVI)			Zillow Rent Index (ZRI)
Metropolitan Areas	November 2013 ZHVI	Month-Month % Change	Year-Year % Change	November 2013 ZRI	Month-Month % Change	Year-Year % Change
United States	$168,900	0.6%	7.1%	$1,297	0.3%	2.0%
New York, NY	$366,600	0.8%	6.2%	$2,295	-0.5%	5.9%
Los Angeles, CA	$493,500	0.7%	18.8%	$2,335	0.0%	2.4%
Chicago, IL	$177,200	0.9%	9.5%	$1,591	1.0%	5.1%
Dallas-Fort Worth, TX	$143,100	-0.5%	4.6%	$1,369	0.6%	3.7%
Philadelphia, PA	$193,900	0.4%	3.6%	$1,500	-0.5%	2.0%
Houston, TX	$141,400	0.1%	4.6%	$1,406	0.2%	5.0%
Washington, DC	$342,100	0.4%	8.9%	$2,091	0.2%	1.5%
Miami-Fort Lauderdale, FL	$182,200	1.7%	17.8%	$1,701	0.6%	6.1%
Atlanta, GA	$135,200	1.7%	15.5%	$1,175	0.6%	3.5%
Boston, MA	$349,200	0.5%	8.6%	$2,039	1.1%	4.0%
San Francisco, CA	$637,100	0.5%	21.1%	$2,601	0.4%	4.7%
Detroit, MI	$104,700	1.7%	23.2%	$1,051	0.7%	1.3%
Riverside, CA	$254,600	1.7%	29.2%	$1,598	0.4%	1.7%
Phoenix, AZ	$187,000	-0.3%	12.7%	$1,149	0.3%	-0.3%
Seattle, WA	$308,800	0.4%	11.2%	$1,728	1.2%	7.2%
Minneapolis-St Paul, MN	$198,800	0.7%	11.1%	$1,487	1.0%	3.2%
San Diego, CA	$439,100	0.8%	19.0%	$2,175	0.3%	3.3%
St. Louis, MO	$131,900	-0.8%	-1.6%	$1,095	-0.1%	0.0%
Tampa, FL	$133,900	1.6%	17.0%	$1,219	0.5%	2.6%
Baltimore, MD	$235,600	0.4%	5.7%	$1,688	-0.3%	1.3%
Denver, CO	$242,700	0.3%	9.3%	$1,641	1.4%	8.5%
Pittsburgh, PA	$118,600	0.5%	5.9%	$1,057	1.2%	6.3%
Portland, OR	$258,300	0.2%	11.7%	$1,477	1.2%	5.8%
Sacramento, CA	$303,200	1.1%	25.0%	$1,551	0.5%	2.7%
San Antonio, TX	$146,300	-0.2%	1.5%	$1,235	0.1%	3.0%
Orlando, FL	$151,500	1.4%	19.5%	$1,270	0.3%	5.9%
Cincinnati, OH	$132,200	0.5%	5.4%	$1,128	0.8%	7.6%
Cleveland, OH	$116,200	-0.1%	2.5%	$1,109	-0.2%	4.3%
Kansas City, MO	$139,000	-0.1%	2.5%	$1,100	1.1%	-0.5%
Las Vegas, NV	$167,500	1.6%	30.9%	$1,177	0.4%	2.3%
San Jose, CA	$734,000	0.0%	16.0%	$2,757	0.5%	6.3%
Columbus, OH	$135,900	0.9%	6.8%	$1,208	-0.2%	7.6%
Charlotte, NC	$147,400	0.9%	7.0%	$1,155	0.3%	1.4%
Indianapolis, IN	$123,000	-0.7%	2.2%	$1,171	0.4%	4.0%
Austin, TX	$200,500	0.9%	6.3%	$1,521	0.3%	6.0%

About Zillow:
Zillow, Inc. (NASDAQ: Z) operates the largest home-related marketplaces on mobile and the Web, with a complementary portfolio of brands and products that help people find vital information about homes, and connect with the best local professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Stan Humphries. Dr. Humphries and his team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. The Zillow, Inc. portfolio includes Zillow.com®, Zillow Mobile, Zillow Mortgage Marketplace, Zillow Rentals, Zillow Digs™, Postlets®, Diverse Solutions®, Agentfolio™, Mortech®, HotPads™ and StreetEasy®. The company is headquartered in Seattle.

Zillow.com, Zillow, Postlets, Mortech, Diverse Solutions and StreetEasy are registered trademarks of Zillow, Inc. HotPads, Digs and Agentfolio are trademarks of Zillow, Inc.

[i] The Zillow Home Value Index is the median estimated home value for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. It is expressed in dollars, and seasonally adjusted.
[ii] The Zillow Real Estate Market Reports are a monthly overview of the national and local real estate markets. The reports are compiled by Zillow Real Estate Research. For more information, visit www.zillow.com/research/. The data in Zillow's Real Estate Market Reports is aggregated from public sources by a number of data providers for 931 metropolitan and micropolitan areas dating back to 1996. Mortgage and home loan data is typically recorded in each county and publicly available through a county recorder's office. All current monthly data at the national, state, metro, city, ZIP code and neighborhood level can be accessed at www.zillow.com/local-info/.
[iii] The Zillow Home Value Forecast uses data from past home value trends and current market conditions, including leading indicators like home sales, months of housing inventory supply and unemployment, to predict home values over the next 12 months for the nation and for more than 250 markets across the country.
[iv] The Zillow Rent Index is the median Rent Zestimate (estimated monthly rental price) for a given geographic area on a given day, and includes the value of all single-family residences, condominiums, cooperatives and apartments in Zillow's database, regardless of whether they are currently listed for rent. It is expressed in dollars.

SOURCE Zillow, Inc.