For the sixth straight month, home value appreciation was at or exceeded 5%, according to data from Zillow. More specifically, home values rose in April to $158,300.
Home values jumped 5.2% over year ago levels, Zillow ($59.41 0%)reported, reaching their highest level since June 2004.
A majority of the 365 metros — 55% to be exact — experienced home value appreciation in April from March. Sacramento saw the largest monthly increase, with home values jumping 3.4%. Las Vegas and San Francisco also reported monthly increases of 3% and 2.8%, respectively.
Looking forward, home values from April 2013 through April 2014 are predicted to rise 4% to approximately $164,648, according to Zillow. This is a drop from the 5.2% annual rate of appreciation reported between April 2012 and April 2013 and indicates a shift in supply and demand in some of the hardest-hit markets.
“April marks the sixth straight month of annual home value appreciation of 5% 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 Stan Humphries.
Humphries added, “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.”
Chicago was the only metro that did not experience year-over-year home value increases. More than half of the 30 largest metros covered saw double-digit percentage increases.
Home values rise 5% for sixth consecutive month | HousingWire.