Zillow: Home Values Reaching New Peaks

Homes were worth more than ever before in more than one-quarter of U.S. housing markets, according to new data from Zillow.

The national Zillow Home Value Index was $184,600 in February, 5.9 percent below the record median home value set in mid-2007. Housing markets in the South and West have been exceptionally vibrant: Dallas home values set a new record at $180,700 in February, up 13.7 percent on a year-over-year basis, while values in Louisville, Ky., rose 13.2 percent year-over-year to $146,100 and Nashville home values rose 9.5 percent year-over-year to a median of $189,100.

"These new records mean we're no longer making up ground lost during the housing recession --we're laying a new path forward, based on demand for housing and economic growth throughout the economy" said Zillow Chief Economist Svenja Gudell. "In some markets, these new highs are a return to normalcy. The fact that other markets are still off by double digits may not mean those markets are far from being recovered. It just highlights how extraordinarily inflated home values had been during the housing bubble."

As for renters, the Zillow Rent Index for February saw a 2.6 percent year-over-year rise, with only San Francisco experiencing double-digit rent appreciation on an annual basis, at 10.5 percent.