Wednesday, November 21, 2012

Zillow home value report

Home values and rent in the Boston area rose in October from a year earlier, according to the October Zillow Real Estate Market Reports.
Local home values rose 3.1 percent in October to $314,000. The increase was not as strong as the 4.7 percent jump for homes nationwide. Nationally, the home value index was at $155,000.
Of the nation's 30 largest metro areas covered by Zillow, only Chicago experienced monthly home value declines. Additionally, 26 of the country's largest metros experienced year-over-year value increases. Major markets where home values increased the most over the past year include Phoenix (22.3 percent), San Jose (11.4 percent), Denver (10.4 percent), San Francisco (9.5 percent) and Miami-Ft. Lauderdale (8.8 percent).
In October, the Zillow Rent Index for the Boston metro area stood at $1,974, up 6.5 percent from October 2011. The year-over-year gain in the rent index put the Boston area in the top five of the country's 30 largest metros - behind only Chicago, Baltimore, Charlotte and San Francisco.
The largest metro areas in the Bay State - including Worcester, Springfield and Cape Cod - also experienced year-over-year rent price increases ranging from 3.5 percent to 8.6 percent, according to Zillow.
Year-over-year, rents nationwide were up 5.4 percent and rose on an annual basis in all but three of the largest metros surveyed.
"We've reached a milestone with one full year of monthly home value gains," Zillow Chief Economist Stan Humphries said in a statement. "Those dubious about the durability of the housing recovery will point to the large role that investors are playing in the recovery, or to the large number of foreclosures yet to hit the market, as factors to be wary of. But the bottom line is that 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. We're hopeful that negotiations over the ‘fiscal cliff' don't derail this momentum."

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