Coldwell Banker
Mobile: 213-304-0126
Office: 323-906-2431
Fax: 323-666-4955

US Home Values Continue to Surge in August

Category : Uncategorized

Nearly 35% of Metros in the U.S. Saw Double-Digit Annual Appreciation, Which Will Begin to Level Out as Inventory Shortages Ease and Mortgage Rates Rise
SEATTLE, Sept. 23, 2013 /PRNewswire/ — National home value appreciation continued to climb in August, up 0.4 percent from July to a Zillow(R) Home Value Index(i) of $162,100, according to the August Zillow Real Estate Market Reports(ii) . Home values were up 6.6 percent annually in August, the largest gain since July 2006, when home values rose 7.9 percent year-over-year.

National home values have risen or remained flat month-over-month for almost two years, though the pace of monthly home value appreciation has slowed in recent months. August marked the third consecutive month in which monthly home values rose more slowly than the month prior.

A majority (85 percent) of the 382 metros covered in August experienced annual home value appreciation. Among the 30 largest metro areas covered by Zillow, 20 saw annual appreciation of 10 percent or more. Metros with notable annual increases in August include Sacramento (34.1 percent), Las Vegas (30.6 percent) and Riverside, Calif. (29.7 percent).

For the 12-month period from August 2013 to August 2014, U.S. home values are expected to rise another 5.2 percent, to approximately $170,500, according to the Zillow Home Value Forecast(iii) . Large metro areas expected to show the most appreciation over the next year include Riverside (21.9 percent), Sacramento (19.2 percent) and Los Angeles (13.2 percent).

“August marked the end of one of the hottest summer home shopping seasons in years, as home value appreciation rates continued their rocket ride upward — perhaps dangerously so in some metro areas,” said Zillow Chief Economist Stan Humphries. “Double-digit appreciation rates do help to lift homeowners out of negative equity and to entice sellers into a low-inventory environment, but this rapid growth is not normal and cannot and should not be expected to last. We are already beginning to see moderation in the monthly pace of home value appreciation, which will be good for the market overall and in the long term.”

National rents also rose in August compared with July, up 0.5 percent to a Zillow Rent Index(iv) of $1,293. Year-over-year, national rents were up 1.9 percent in August.

The number of completed foreclosures in August fell to 5.17 homes foreclosed out of every 10,000 homes nationwide, down from 5.27 homes in July. Foreclosure resales represented 8.28 percent of homes sold in the U.S. in August, down 0.3 percentage points from July and 3.1 percentage points from August 2012.

Zillow Home Value Index (ZHVI) Zillow Rent Index (ZRI)
————— ————————————————– ————————————————
August August
Metropolitan 2013 2013
Areas ZHVI Month-Month % Change Year-Year % Change ZRI Month-Month % Change Year-Year % Change
————— ——– ——————– —————— —— ——————– ——————
United States $162,100 0.4% 6.6% $1,293 0.5% 1.9%
————— ——– ——————– —————— —— ——————– ——————
New York, NY $351,800 0.6% 3.3% — — —
————— ——– ——————– —————— —— ——————– ——————
Los Angeles, CA $483,200 1.7% 22.8% $2,318 0.4% 1.6%
————— ——– ——————– —————— —— ——————– ——————
Chicago, IL $169,700 1.2% 4.9% $1,541 0.4% 0.8%
————— ——– ——————– —————— —— ——————– ——————
Philadelphia,
PA $189,600 0.0% 2.5% $1,503 0.1% 0.7%
————— ——– ——————– —————— —— ——————– ——————
Washington, DC $341,900 0.8% 8.9% $2,089 0.4% 1.5%
————— ——– ——————– —————— —— ——————– ——————
Miami-Fort
Lauderdale,
FL $170,200 1.5% 15.2% $1,659 0.6% 4.0%
————— ——– ——————– —————— —— ——————– ——————
Atlanta, GA $126,000 1.6% 13.3% $1,138 0.4% 1.2%
————— ——– ——————– —————— —— ——————– ——————
Boston, MA $341,200 1.2% 10.1% $1,997 0.1% 3.5%
————— ——– ——————– —————— —— ——————– ——————
San Francisco,
CA $633,700 1.5% 28.1% $2,555 0.3% 2.9%
————— ——– ——————– —————— —— ——————– ——————
Detroit, MI $93,700 1.7% 20.3% $1,044 0.7% 2.0%
————— ——– ——————– —————— —— ——————– ——————
Riverside, CA $241,700 3.0% 29.7% $1,586 0.2% 2.6%
————— ——– ——————– —————— —— ——————– ——————
Phoenix, AZ $181,400 1.5% 20.9% $1,145 0.0% -0.4%
————— ——– ——————– —————— —— ——————– ——————
Seattle, WA $305,900 1.4% 16.0% $1,672 0.7% 3.8%
————— ——– ——————– —————— —— ——————– ——————
Minneapolis-St
Paul, MN $197,100 2.0% 16.3% $1,463 0.4% 1.5%
————— ——– ——————– —————— —— ——————– ——————
San Diego, CA $436,000 1.8% 23.7% $2,149 0.2% 2.5%
————— ——– ——————– —————— —— ——————– ——————
St. Louis, MO $128,300 -0.1% 1.7% $1,091 1.0% -1.4%
————— ——– ——————– —————— —— ——————– ——————
Tampa, FL $127,000 1.7% 15.6% $1,207 0.2% 2.8%
————— ——– ——————– —————— —— ——————– ——————
Baltimore, MD $230,000 0.3% 6.0% $1,683 0.4% 0.2%
————— ——– ——————– —————— —— ——————– ——————
Denver, CO $248,600 1.3% 14.5% $1,577 0.9% 5.6%
————— ——– ——————– —————— —— ——————– ——————
Pittsburgh, PA $112,900 0.8% 4.6% $1,005 1.2% -2.0%
————— ——– ——————– —————— —— ——————– ——————
Portland, OR $256,800 1.3% 15.8% $1,433 0.5% 3.3%
————— ——– ——————– —————— —— ——————– ——————
Sacramento, CA $279,600 2.0% 34.1% $1,466 0.3% 0.3%
————— ——– ——————– —————— —— ——————– ——————
Orlando, FL $143,000 1.8% 17.5% $1,246 0.3% 3.8%
————— ——– ——————– —————— —— ——————– ——————
Cincinnati, OH $127,700 0.7% 4.0% $1,122 -0.9% 7.3%
————— ——– ——————– —————— —— ——————– ——————
Cleveland, OH $115,100 0.3% 5.1% $1,109 0.2% 3.3%
————— ——– ——————– —————— —— ——————– ——————
Las Vegas, NV $156,600 2.8% 30.6% $1,159 0.3% 0.9%
————— ——– ——————– —————— —— ——————– ——————
San Jose, CA $734,500 0.9% 24.0% $2,685 0.6% 3.8%
————— ——– ——————– —————— —— ——————– ——————
Columbus, OH $132,200 0.4% 6.4% $1,192 0.8% 3.4% ————— ——– ——————– —————— —— ——————– ——————
Charlotte, NC $139,100 0.3% 2.9% $1,144 0.0% 0.3%
————— ——– ——————– —————— —— ——————– ——————
Indianapolis,
IN $137,500 0.8% 10% $1,155 0.2% 1.1%
————— ——– ——————– —————— —— ——————– ——————
About Zillow:


Rising Home Prices Help with Underwater Mortgages

Category : Uncategorized

Shutterstock

Rising home prices drove down the number of U.S. homeowners struggling with underwater mortgages in the second quarter, leaving 14.5 percent of residential properties with a mortgage in negative equity, a report from CoreLogic showed on Tuesday. The rate was down from 19.7 percent in the first quarter, 22.3 percent a year ago and 26 percent in the fourth quarter of 2009, which was the most since CoreLogic began keeping statistics earlier that year.

Negative equity, another term for underwater mortgage, refers to properties whose value is less than what is owed on the mortgage. Negative equity rates spiked in the aftermath of the housing crisis, which began in earnest five years ago and set off a multiyear free-fall in prices. But recovery in the sector over the past year has helped improve some homeowners’ standings. There were 7.1 million underwater homes in the second quarter compared with a downwardly revised 9.6 million in the first three months of 2013, CoreLogic said.

According to the S&P/Case Shiller composite index of 20 metropolitan areas, prices were up 12.1 percent in the 12 months to June. “Price appreciation obviously had a positive impact on home equity over the first half of 2013, especially in the second quarter,” CoreLogic Chief Executive Anand Nallathambi said in a statement.

About 3.5 million homeowners regained positive equity in the first half of the year, the report said.
Nevada had the highest percentage of properties in negative equity in the second quarter at 36.4 percent. Rounding out the top five were Florida, Arizona, Michigan and Georgia. These five states combined accounted for 34.9 percent of negative equity in the United States.

The housing market, however, is far from fully healed. In addition to the 7.1 million homes with underwater mortgages, another 1.7 million were considered to be in near-negative equity in the second quarter, a description for properties with less than 5 percent equity. Even a modest fall in prices could put those mortgages underwater, and economists expect a recent rise in mortgage rates to slow the pace of price gains in the months ahead.

Mark Fleming, CoreLogic’s chief economist, said that a slowing in price gains could slow the rate at which homeowners return to positive equity.