National home values continued their year-long climb in October, rising 1.1 percent from September to a Zillow Home Value Index of $155,400, according to the October Zillow Real Estate Market Reports. The monthly increase was the largest since August 2005, when home values rose 1.2 percent month-over-month, and represents the 12th consecutive monthly increase. Annually, home values were up 4.7 percent from October 2011, the largest gain since September 2006.
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).
National rents were largely flat month-to-month, falling 0.1 percent to a Zillow Rent Indexiii 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.
"We've reached a milestone with one full year of monthly home value gains," said Zillow Chief Economist Dr. Stan Humphries. "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."
Foreclosures also fell in October, with 5.57 out of every 10,000 homes in the country being foreclosed during the month. That was down 0.8 percent from September, and down 1.9 percent year-over-year.