U.S. home values rose in October for the twelfth consecutive month. Median home values nationwide last month rose 1.1 percent from September and 4.7 percent from October 2011, to $155,400, according to Zillow’s October Real Estate Market Reports.
The monthly increase was the largest since August 2005, when home values rose 1.2 percent month-over-month. The year-over-year increase was the largest since September 2006.
Home values rose in the month in line with continuing recovery in the broader national economy, and reflect increased buyer demand driven by high affordability and tight inventory.
“We’ve reached a milestone with one full year of monthly home value gains,” said Zillow Chief Economist Dr. Stan Humphries. “Skeptics 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.”
A number of major markets were up substantially in October. Among those metro areas sporting double-digit, year-over-year gains in home values were Phoenix (22.3 percent), San Jose (11.4 percent) and Denver (10.4 percent). Only Chicago failed to register either month-over-month or year-over-year home value gains.
On the rental side, national rents were largely flat month-to-month, falling 0.1 percent to a Zillow Rent Index of $1,279. 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.
For more information on October’s report, head to the Zillow Research page.
What are home values and rents doing where you live? Dive into Zillow’s data, available all the way down to ZIP code and neighborhood levels, here.