Housing Turnaround? Values Increase Year-Over-Year for First Time Since 2007

The Home Value Index by the real estate site Zillow rose on an annual basis for the first time since 2007, increasing 0.2 percent to $149,300 in the second quarter compared to last year.
Values have risen for four consecutive months.
The percentage increase is slight, but Zillow reports that it signifies a bottom in national home values.
Nearly one-third of metropolitan areas, or 53 of the 167 cities covered by Zillow, posted annual increases in home values.
The largest jump came in Phoenix, where home values are up 12.1 percent this year, compared to the second quarter of 2011.
Zillow forecasts that two in five, or 67 of the 156 markets covered by the site, are expected to see increases in home values over the next year. The  biggest  increases are expected in Phoenix (9.9 percent) and the Miami (6.1 percent).
U.S. home values are expected to rise 1.1 percent, Zillow said.
“After four months with rising home values and increasingly positive forecast data, it seems clear that the country has hit a bottom in home values,” said Zillow Chief Economist Dr. Stan Humphries. “The housing recovery is holding together despite lower-than-expected job growth, indicating that it has some organic strength of its own.
Zillow also reported that foreclosures continued to fall, with 5.8 out of every 10,000 homes lost to foreclosure in June.
That rate has been declining since January, when 7.9 out of every 10,000 homes were lost to foreclosure.
However, foreclosures are expected to increase as stalled cases are revived following the national mortgage settlement with the top lenders.
Foreclosure re-sales also fell, making up 15.6 percent of all sales in June. Foreclosure re-sales have been falling since February, when they made up 18.8 percent of all sales.

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