Home values have now increased every month for more than a year, rising 0.6 percent from October to November to a Zillow Home Value Index of $156,200, according to the November Zillow Real Estate Market Reports. Home values were up 5.2 percent compared with last November, the largest annual gain since August 2006, when home values rose 6 percent year over year. The monthly increase is the 13th in a row for national home values. The last time home values stood at $156,200 was May 2004.
Of the nation's 30 largest metro areas covered by Zillow, 25 experienced monthly home value gains. Metro areas with the largest monthly gains in November included Sacramento, Calif. (1.8 percent), Detroit (1.5 percent), Las Vegas (1.4 percent), San Francisco (1.4 percent), Riverside, Calif. (1.4 percent) and Phoenix (1.4 percent).
Additionally, 26 of the country's largest metros experienced year-over-year home value increases. Major markets where home values increased the most over the past year include Phoenix (23.2 percent), San Jose, Calif. (13.4 percent), San Francisco (12.1 percent), Las Vegas (11 percent) and Denver (10.8 percent). Chicago, Atlanta, Philadelphia and New York were the only metro areas in the top 30 where home values have declined year over year.
National rents were largely flat month over month, falling 0.1 percent to a Zillow Rent Index of $1,278. Year over year, rents nationwide were up 4.5 percent and rose on an annual basis in 27 of the 30 largest metros surveyed.
"The housing market recovery we've been experiencing throughout 2012 should continue on its own momentum into 2013," said Zillow Chief Economist Dr. Stan Humphries. "Tight inventory, courtesy of negative equity, is running headlong into high demand driven by historic affordability and renewed consumer and investor interest. This is helping home values rise in a majority of metro areas nationwide. Looking forward, we expect this dynamic to continue, with the welcome result being more underwater borrowers released from negative equity as home values rise."
Foreclosures also fell in November, with 5.26 out of every 10,000 homes in the country being foreclosed upon during the month. That was down 1.2 percent from October, and down two percent year over year.