By Peter Ricci
National home values rose 1.1 percent from September to October in the latest Zillow Home Value Index, which is the largest monthly increase since August 2005 and the 12th consecutive month of value increases for the index.
In addition, home values rose 4.7 percent from October 2011, the largest gain since September 2006, in what is surely a positive sign for the next Case-Shiller, which is due out tomorrow morning.
Zillow Home Value Index – Home Prices Catching Up with Rents
Altogether, the latest Zillow Home Value Index was quite positive for the residential real estate front, as Zillow reported:
- Of the nation’s 30 largest metro areas, only Chicago saw its home values decline from September to October, but even that was a mere 0.2 percent.
- Chicago’s home values also fell yearly by 2.1 percent, but its rental market remained strong as ever, posting a 9.5 percent increase year-over-year.
- Of course, Chicago was not the norm, with other cities, such as Miami and Houston, putting up strong numbers. Both of the latter cities saw home values increase 0.5 percent monthly, while Miami’s 8.8 percent yearly increase was among the strongest in the nation.
- Overall, the nation’s asking rents were largely flat, falling 0.1 percent month-to-month in the Zillow Rent Index, though yearly rents were up 5.4 percent.
- Foreclosures also played less of a role in October, falling 0.8 percent from September and 1.9 percent from October 2011.
Stan Humphries – A Housing “Milestone”
Stan Humphries, the chief economist at Zillow, was extremely optimistic in his comments, saying that – pending the Fiscal Cliff – housing is on path for a sustainable recovery.
“We’ve reached a milestone with one full year of monthly home value gains,” Humphries said. “Homes are more affordable now than at any time in recent memory, and buyers are seizing this opportunity. We expect to see increasing numbers of potential buyers entering the market as the broader economy continues to recover and household formation picks up further.