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Press release from PR Newswire

Annual U.S. Home Value Appreciation Exceeds 5 Percent for Sixth Straight Month in April

Tuesday, May 21, 2013

Annual U.S. Home Value Appreciation Exceeds 5 Percent for Sixth Straight Month in April

08:00 EDT Tuesday, May 21, 2013

Home Values in California, Southwest Metros Continue to Sizzle; National Rents Cool, According to April Zillow Real Estate Market Reports

SEATTLE, May 21, 2013 /PRNewswire/ -- Home values continued to climb in April, increasing 0.5 percent from March to a Zillow® Home Value Index[i] of $158,300, according to the April Zillow Real Estate Market Reports[ii].  Home values were up 5.2 percent year-over-year, marking the sixth consecutive month of annual home value appreciation at or above 5 percent. The last time national home values were at this level was in June 2004.

A majority (55 percent) of the 365 metros covered saw home values climb in April from March. Of the 30 largest metro areas covered, Sacramento experienced the largest monthly increase, with home values rising 3.4 percent. Other large metro areas with notable monthly increases include Las Vegas (3 percent) and San Francisco (2.8 percent).

For the 12-month period from April 2013 through April 2014, U.S. home values are expected to rise 4 percent to approximately $164,648, according to the Zillow Home Value Forecast[iii]. This is a decrease from the 5.2 percent annual rate of appreciation recorded between April 2012 and April 2013, and reflects anticipated shifts in supply and demand in some of the nation's hard-hit markets.

"April marks the sixth straight month of annual home value appreciation of 5 percent or above, the longest such streak since the height of the bubble in 2006. In the short-term, this has been welcome news for homeowners. But in the long-term, this cannot be sustained, and consumers entering the market today should not expect this kind of appreciation to last," said Zillow Chief Economist Dr. Stan Humphries. "Overall, we expect home value appreciation to moderate as more supply comes on line over the next year, but in some areas, runaway home value appreciation, combined with expected interest rate hikes in coming years, runs a real risk of pricing out many potential buyers. Home values in these areas will have to flatten or even fall to come back in line."

Of the nation's 30 largest metro areas covered by Zillow, 29 experienced year-over-year home value increases, with more than half up by double-digit percentages. Major markets where home values increased the most over the past year include Phoenix (25.5 percent), Sacramento, Calif. (25.4 percent), San Jose, Calif. (25.2 percent), San Francisco (24.8 percent) and Las Vegas (23 percent). Chicago was the only metro area in the top 30 where home values declined year-over-year.

National rents declined slightly in April compared with March, down 0.2 percent to a Zillow Rent Index[iv] of $1,288. Year-over-year, national rents were up 3.9 percent in April.

The number of completed home foreclosures in April fell to 4.81 homes foreclosed out of every 10,000 homes nationwide, down 0.7 homes per 10,000 from March and 2.1 homes per 10,000 from April 2012. This is the lowest monthly level of foreclosure liquidations since September 2007. Foreclosure re-sales represented 12 percent of homes sold in April, down 1 percentage point from March and 4 percentage points from April 2012.

Zillow Home Value Index

Zillow Rent Index

Metropolitan Areas

April2013 ZHVI

Month-Month % Change

Year-Year % Change

April 2013 ZRI

Month-Month % Change

Year-Year % Change

United States

$158,300

0.5%

5.2%

$1,288

-0.2%

3.9%

New York

$345,500

0.2%

1.5%

--

--

--

Los Angeles

$452,000

2.3%

17.9%

$2,308

-0.1%

2.9%

Chicago

$161,000

0.1%

-0.2%

$1,528

-0.1%

3.9%

Dallas-Fort Worth

$133,900

1.0%

6.4%

$1,342

0.1%

4.7%

Philadelphia

$188,300

0.1%

1.5%

$1,492

0.2%

0.3%

Washington, D.C.

$330,800

0.4%

6.7%

$2,083

0.1%

3.5%

Miami-Fort Lauderdale

$161,800

1.4%

13.5%

$1,624

0.0%

2.9%

Atlanta

$118,300

0.4%

4.4%

$1,141

0.0%

1.2%

Boston

$323,000

0.2%

4.8%

$1,993

0.1%

5.9%

San Francisco

$586,200

2.8%

24.8%

$2,560

0.2%

5.3%

Detroit

$86,500

1.5%

14.0%

$1,027

-0.8%

0.2%

Riverside

$215,900

2.3%

18.8%

$1,582

-0.4%

2.8%

Phoenix

$169,700

2.0%

25.5%

$1,167

-0.3%

3.1%

Seattle

$288,500

2.2%

12.7%

$1,645

0.7%

2.9%

Minneapolis-St. Paul

$182,300

0.8%

10.6%

$1,474

-0.1%

4.9%

San Diego

$408,000

2.2%

19.7%

$2,125

0.1%

1.7%

St. Louis

$125,900

0.1%

0.2%

$1,098

-0.9%

0.7%

Tampa, Fla.

$119,900

1.4%

11.0%

$1,200

0.2%

2.7%

Baltimore

$222,700

-0.1%

2.4%

$1,682

0.2%

2.9%

Denver

$237,100

1.0%

13.4%

$1,566

-0.1%

9.1%

Pittsburgh

$112,700

0.1%

3.3%

$1,015

2.9%

1.0%

Portland, Ore.

$242,100

1.7%

12.1%

$1,428

0.3%

5.8%

Sacramento, Calif.

$252,900

3.4%

25.4%

$1,474

-0.3%

3.0%

Orlando, Fla.

$132,900

1.1%

11.0%

$1,226

0.4%

2.7%

Cincinnati

$125,000

0.5%

1.8%

$1,086

1.0%

0.9%

Cleveland

$111,300

-0.3%

1.3%

$1,115

0.1%

3.3%

Las Vegas

$139,800

3.0%

23.0%

$1,151

0.0%

0.3%

San Jose, Calif.

$701,400

2.8%

25.2%

$2,662

-0.4%

3.7%

Columbus, Ohio

$128,300

0.3%

3.7%

$1,187

0.3%

2.3%

Charlotte, N.C.

$136,200

-0.5%

1.2%

$1,161

-0.3%

4.8%

About Zillow:Zillow, Inc. (NASDAQ: Z) operates the largest home-related marketplaces on mobile and the Web, with a complementary portfolio of brands and products that help people find vital information about homes, and connect with the best local professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Stan Humphries. Dr. Humphries and his team of economists and data analysts produce extensive housing data and research covering more than 350 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. The Zillow, Inc. portfolio includes Zillow.com®, Zillow Mobile, Zillow Mortgage Marketplace, Zillow Rentals, Zillow Digs?, Postlets®, Diverse Solutions®, Buyfolio?, Mortech? and HotPads?. The company is headquartered in Seattle.

Zillow.com, Zillow, Zestimate, Postlets and Diverse Solutions are registered trademarks of Zillow, Inc. Buyfolio, Mortech, HotPads and Digs are trademarks of Zillow, Inc.

[i] The Zillow Home Value Index is the median estimated home value for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. It is expressed in dollars, and seasonally adjusted.

[ii] The Zillow Real Estate Market Reports are a monthly overview of the national and local real estate markets. The reports are compiled by Zillow Real Estate Research. For more information, visit www.zillow.com/research/. The data in Zillow's Real Estate Market Reports is aggregated from public sources by a number of data providers for 929 metropolitan and micropolitan areas dating back to 1996. Mortgage and home loan data is typically recorded in each county and publicly available through a county recorder's office. All current monthly data at the national, state, metro, city, ZIP code and neighborhood level can be accessed at www.zillow.com/local-info/.

[iii] The Zillow Home Value Forecast uses data from past home value trends and current market conditions, including leading indicators like home sales, months of housing inventory supply and unemployment, to predict home values over the next 12 months for the nation and for more than 250 markets across the country.

[iv] The Zillow Rent Index is the median Rent Zestimate (estimated monthly rental price) for a given geographic area on a given day, and includes the value of all single-family residences, condominiums, cooperatives and apartments in Zillow's database, regardless of whether they are currently listed for rent. It is expressed in dollars.

SOURCE Zillow, Inc.

For further information: Camille Salama of Zillow, +1-206-757-2701, press@zillow.com

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