Over the past year, U.S. home values surged 8.7 percent to a median value of $215,600. That’s the fastest pace in 12 years, according to the Zillow’s latest Real Estate Market Report.
Home values in 21 of the 35 largest housing markets have surpassed the peak value seen during the height of the housing boom — before the bubble burst during the financial crisis — over a decade ago. U.S. home values are now higher than they have ever been, Zillow says.
“The spring home shopping season has been a perfect storm of strong demand and tight supply,” said Zillow senior economist Aaron Terrazas. “Sluggish new construction has exacerbated the supply situation and homes that are hitting the market, are moving very quickly once they do.”
Another trend, says Terrazas has to do with young adults in the market for their first home. “Millennials who long delayed becoming homeowners, are out in force – a shift we’re also seeing in softer rent appreciation,” he adds.
Median rent across the nation rose 2.5 percent over the past year to a median payment of $1,449 per month. Sacramento, Calif., Riverside, Calif., and Las Vegas reported the greatest year-over-year rent appreciation among the 35 largest U.S. metros. In Sacramento and Riverside, median rent rose 7 percent and in Las Vegas, median rent rose 4.5 percent.
Read Zillow’s full report.