Homes have appreciated to pre-bust pace, with values rising at an annual rate of 6.5 percent as of November, according to Zillow’s recently released Real Estate Market Reports, with the Zillow Home Value Index (ZHVI) at a median of $192,500. The pace of growth is the fastest since the 2006 peak of the bubble, when homes were appreciating at an annual rate of 11 percent.
“Home value growth continues to be strong, supported by solid buyer demand and still limited for-sale inventory in many markets across the country,” say Zillow Chief Economist Svenja Gudell. “Conditions today are very different than the ones we saw back in 2006, which was the last time we saw home values rising this fast. Rampant real estate speculation and loose mortgage credit have been replaced by the sound economic fundamentals we are seeing now.”
The most year-over-year growth in November, according to the Reports, was recorded in Dallas, Texas, Portland Ore., and Seattle, Wash.; homes appreciated 12 percent in both Dallas and Seattle, and 14 percent in Portland.
Rent appreciation, however, has slowed to an annual rate of 1.5 percent—expected to continue to next year—with the median rent at $1,403, per the Reports. Seattle, as well, posted the most year-over-year growth, at 9 percent.
Comparing metropolitan areas:
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