National home values rose 1.1% in October to $155,400, according to new data released by Zillow. This monthly increase was the largest since August 2005, when home values rose 1.2% month-over-month, and represents the twelfth consecutive monthly increase. Annually, home values were up 4.7% from October 2011, the largest gain since September 2006.
Of the nation's 30 largest metro areas covered by Zillow, only Chicago experienced monthly home value declines. Additionally, 26 of the country's largest metros experienced year-over-year value increases.
Foreclosures fell in October, with 5.57 out of every 10,000 homes in the country being foreclosed during the month. That was down 0.8% from September, and down 1.9% year-over-year.
On the rental side of the industry, national rents fell in October 0.1%, to $1,279. Year-over-year, rents nationwide were up 5.4% and rose on an annual basis in all but three of the largest metros surveyed.
‘We've reached a milestone with one full year of monthly home value gains,’ says Zillow Chief Economist Stan Humphries. ‘Those dubious about the durability of the housing recovery will point to the large role that investors are playing in the recovery, or to the large number of foreclosures yet to hit the market, as factors to be wary of. But the bottom line is that homes are more affordable now than at any time in recent memory, and buyers are seizing this opportunity. We expect to see increasing numbers of potential buyers entering the market as the broader economy continues to recover and household formation picks up further. We're hopeful that negotiations over the 'fiscal cliff' don't derail this momentum.’