U.S. Home Values Gain $1.7 Trillion in Value in 2014, Ending Year of Steady Market Improvement

Rapid home value growth continued to level off in the second half of 2014, but hardest-hit markets are still seeing double-digit value growth

- Cumulatively, U.S. homes will be worth $27.5 trillion at the end of 2014, a 6.7 percent increase overall.

- Inventory fell slightly from October to November, although it was still up by 11.8 percent from a year ago.

- In November, national home values continued to rise at an incrementally slower pace, with a 6 percent annual increase.

News provided by

Zillow, Inc.

Dec 19, 2014, 08:00 ET

SEATTLE, Dec. 19, 2014 /PRNewswire/ -- The total value of all the homes in the United States is expected to end 2014 at $27.5 trillion, a 6.7 percent increase from last year and the third consecutive overall increase, according to Zillow. Homes lost $6.1 trillion in value between December 2006 and December 2011.

The cumulative increase in home values is slightly smaller than 2013's 8 percent increase, and that kind of gradual slowing is a sign of the times as the market heads for slower expected gains in 2015. Over the second half of 2014, inventoryⁱ increased in many U.S. markets and, with more homes on the market, home value appreciation slowed.

"Looking at the total value of the U.S. housing stock proves just how huge and important the housing sector is to the overall economy," said Zillow Chief Economist Dr. Stan Humphries. "Virtually nowhere else will you see gains of more than a trillion dollars in one year represent only single-digit percentages of the total market. As we conclude 2014 and look ahead at 2015 and beyond, housing will play a bigger role in the broader economic recovery. As the job market improves and more households form, more people will search for homes to buy and rent, which will translate into more people buying appliances and home goods and lead to more jobs for home builders and contractors. Housing is well positioned to continue the great strides already made this year."

Zillow's November Real Estate Market Reportsⁱⁱ showed home values up 6 percent from November 2013 to a Zillow® Home Value Index (ZHVI)ⁱⁱⁱ of $177,600. Looking ahead, as more homes come on the market, growth in home values is expected to slow, to a 2.4 percent pace through November 2015, according to the Zillow Home Value Forecast.^iv There were 11.8 percent more homes for sale in November 2014 than a year prior, but inventory fell slightly in many major markets from October to November.

Among major markets, home values were up the most year-over-year in Miami (13.6%), Atlanta (12.8%), Houston (11.9%), Orlando (11.9%), and Las Vegas (11.5%). Values were higher than last November in almost every major U.S. metro.

National rents were up in November from a year ago, up 3.4 percent to a Zillow Rent Index (ZRI)^v of $1,342.

Cumulative Value			November Market Reports
Metropolitan Area	Projected Value, All Homes Year-End 2014	YoY Change in Value	November 2014 ZHVI	YoY Change in ZHVI	YoY Change in Inventory	November 2014 ZRI
United States	$27.5 trillion	6.7%	$177,600	6.0%	11.8%	$1,342
New York / Northern New Jersey	$2.1 trillion	8.2%	$382,900	4.9%	15.7%	$2,329
Los Angeles, CA	$2.3 trillion	5.2%	$532,200	6.5%	19.6%	$2,437
Chicago, IL	$739 billion	5.7%	$188,800	5.8%	14.6%	$1,636
Dallas-Fort Worth, TX	$356 billion	7.4%	$150,900	7.3%	-11.6%	$1,432
Philadelphia, PA	$573 billion	5.4%	$203,600	5.0%	5.7%	$1,544
Houston, TX	$353 billion	11.5%	$151,800	11.9%	-13.5%	$1,485
Washington, DC	$944 billion	4.1%	$361,500	4.6%	35.4%	$2,108
Miami-Fort Lauderdale, FL	$717 billion	9.3%	$208,000	13.6%	23.8%	$1,778
Atlanta, GA	$373 billion	10.5%	$154,000	12.8%	13.3%	$1,221
Boston, MA	$599 billion	4.9%	$364,900	4.5%	8.2%	$2,137
San Francisco, CA	$1.1 trillion	8.5%	$697,500	7.6%	1.8%	$3,011
Detroit, MI	$264 billion	7.3%	$114,800	10.4%	18.1%	$1,078
Riverside, CA	$402 billion	8.2%	$281,000	10.2%	42.6%	$1,653
Phoenix, AZ	$396 billion	0.8%	$198,500	3.1%	9.6%	$1,224
Seattle, WA	$465 billion	6.0%	$336,400	6.3%	9.1%	$1,827
Minneapolis-St Paul, MN	$293 billion	3.3%	$208,600	4.4%	26.7%	$1,506
San Diego, CA	$538 billion	4.6%	$465,000	4.5%	33.2%	$2,265
St. Louis, MO	$171 billion	2.2%	$129,800	2.1%	5.5%	$1,129
Tampa, FL	$216 billion	7.4%	$146,800	10.2%	10.6%	$1,260
Baltimore, MD	$277 billion	2.4%	$242,100	2.1%	26.6%	$1,714
Denver, CO	$302 billion	9.5%	$274,200	11.0%	-29.7%	$1,801
Pittsburgh, PA	$139 billion	6.5%	$125,400	6.4%	-1.0%	$1,128
Portland, OR	$231 billion	5.4%	$276,100	5.5%	4.8%	$1,566
Sacramento, CA	$252 billion	5.0%	$328,600	7.1%	37.4%	$1,615
San Antonio, TX	$107 billion	4.6%	$144,500	5.3%	0.0%	$1,288
Orlando, FL	$165 billion	7.7%	$169,500	11.9%	40.2%	$1,309
Cincinnati, OH	$121 billion	5.2%	$137,300	5.2%	0.9%	$1,189
Cleveland, OH	$110 billion	3.5%	$121,300	3.6%	3.8%	$1,157
Kansas City, MO	$120 billion	5.8%	$137,400	5.6%	-1.7%	$1,192
Las Vegas, NV	$158 billion	8.8%	$184,700	11.5%	29.9%	$1,193
San Jose, CA	$544 billion	10.2%	$824,500	9.3%	-12.3%	$3,184
Columbus, OH	$116 billion	5.2%	$144,600	5.8%	-14.5%	$1,265
Charlotte, NC	$140 billion	4.9%	$157,100	5.6%	-13.2%	$1,223
Indianapolis, IN	$100 billion	-2.6%	$127,900	-1.3%	2.5%	$1,195
Austin, TX	$144 billion	9.9%	$219,900	11.1%	-3.2%	$1,642

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. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. The Zillow, Inc. portfolio includes Zillow.com®, Zillow Mobile, Zillow Mortgages, Zillow Rentals, Zillow Digs®, Postlets®, Diverse Solutions®, Mortech®, HotPads™, StreetEasy® and Retsly™. The company is headquartered in Seattle.

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

ⁱ Each week, a count of the number of single-family, condominium and cooperative housing units listed for sale on Zillow is taken. The median of these values within a month is calculated as the monthly value. Because inventory can be seasonal, a seasonally adjusted value is reported using a standard STL procedure. This seasonally adjusted series is then smoothed using a three-month rolling average. More information is available at www.zillow.com/research.

ⁱⁱThe 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 are aggregated from public sources by a number of data providers for 928 metropolitan and micropolitan areas dating back to 1996. Mortgage and home loan data are 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/ and www.zillow.com/research/data.

ⁱⁱⁱThe 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.

^iv 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.

^v 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.

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SOURCE Zillow, Inc.