PrintBoth home values and rents rose on a national basis from June to July, but in several major markets where demand for homes remains lower, rents increased more than the national median.
Home values in July increased 0.5 percent from June to $151,600, according to the July Zillow Real Estate Market Reports. Home values were up 1.2 percent year-over-year.
Most (62 percent) of the metros covered in the reports saw home values climb during the month, with only 49 of the 167 metro areas experiencing declines. Of the 30 largest metro areas covered, the Phoenix metro area experienced the largest monthly increase, with home values rising 2.2 percent. Other large metro areas with notable monthly increases include the San Francisco metro (1.2 percent) and the Denver metro (1 percent).
Rents also continued to rise, climbing 0.2 percent month-over-month and 5.4 percent year-over-year to a Zillow Rent Index of $1,278. Nationally, rents have increased in 6 out of the past 12 months, with most metros (70 percent) experiencing rent increases from June to July.
In several large metro areas where home values continue to decline ents have experienced double-digit, annual increases, including Chicago (12.6 percent), Providence, R.I. (12.1 percent) and Baltimore (11.9 percent). This is likely due to both continued high foreclosure levels in these markets, which increases rental demand, as well as consumer reluctance to buy when home values continue to fall.
“This summer, the housing market continued to heal, as home values experienced their eighth consecutive month of increases,” said Zillow Chief Economist Dr. Stan Humphries. “Tight inventory levels are leading to bidding wars and multiple offers across the country. Looking ahead, we expect to see less aggressive increases in the fall as rising values lift some would-be sellers out of negative equity, allowing them to place their homes on the market.”
September 3rd, 2012 at 6:28 am
Rents rising is now one of the most common things that is happening these days. One needs I think a large exposure so that the competition must increase and eventually the prices may drop.
homes for rent
October 18th, 2012 at 10:59 pm
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November 17th, 2012 at 3:51 am
Bid/ask spread on hiusong is so wide that the market does not function. In fact, it is not even a market. It’s a charade, and it’s being employed for the sole purpose of propping up an illusion of value. Unfortunately, real value has left the building.Whatever comes next will only be a furthering of the charade and a ratchet up in the things are getting better now rhetoric. Now the pipedream du jour is a massive refinance of negative equity. Let’s see how many investors in first mortgages and holders of junior liens let this one fly.What could possibly be wrong with a refi down to 4% on six figures’ worth of unsecured, underwater debt? What junior lienholder wouldn’t jump to subordinate to such a loan? This is actually more insane than the original risk assessments (or lack thereof) that got us into this mess in the first place.The stench of death is full on now. Smoke em if you got em.