Greater Boston home values soared by 5 percent in the past year, according to Zillow.
Thomas Grillo
Real Estate Editor- Boston Business Journal
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Home values in the Hub increased by more than 9 percent in the past year as the housing market recovery continues to gain momentum, according to Zillow, the online real estate marketplace.
The city of Boston’s home values reached $373,900 in February, up from $342,200 for the same month a year ago, nearing the peak of $377,000 in October 2005.
Residential real estate values in Greater Boston did not do as well, but were certainly respectable with a 5 percent increase in the past year. They are expected to rise another percentage point in 2013, Zillow said. Boston area home values last month swelled to $320,600, up from $304,570 one year ago.
Still, Greater Boston home values are down 15.3 percent from their peak in October 2005.
Of the 30 largest metro areas covered by Zillow (Nasdaq: Z), every market saw an increase in homes values as the housing market recovery became more widespread. Among the cities with the largest year-over-year increases included Phoenix, 22.9 percent, San Francisco 18.6 percent, Las Vegas, 18.1 percent, San Jose 17.1 percent and Sacramento, Calif., 15.3 percent. Only 73 of the 352 total metro markets covered by Zillow experienced year-over-year home value declines in February.
Nationwide, home values rose for the 16th straight month in February to $158,100. U.S. home values were up 5.8 percent year-over-year. The annual gain is the second-largest since August 2006, exceeded only by January’s 6 percent year-over-year jump. The last time national home values were at this level was in June 2004.
For the 12-month period from February 2013 through February 2014, U.S. home values are expected to rise 3.2 percent to approximately $163,100, according to the Zillow Home Value Forecast. This rate is well below the 5.6 percent annual rate of appreciation recorded in 2012, and is in line with Zillow’s expectations that home value appreciation will slow to closer to historic norms of between 3 percent and 5 percent in coming years.
“The housing market recovery has continued to gain momentum over the past several months and looks firmly entrenched as we enter the 2013 spring home shopping season,” said Stan Humphries, Zillow’s economist, in statement.
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