Zillow released their third quarter real estate report today and they’re expecting the recovery in prices to continue into next year. Some markets are expected to appreciate by near double digits:
“According to the Zillow Home Value Forecast, we expect national home values to increase 1.7% over the next year (September 2012 to September 2013). Of the 253 markets covered by the Zillow Home Value Forecast (ZHVF), 181 markets are expected to see increases in home values over the next year, with the largest increases expected in the Phoenix metro (8.5%) and the Bakersfield metro (7.7%). Many California markets follow closely at the top of the list of markets expected to see the highest home value appreciation over the next year. According to the ZHVF, 183 markets (72%) have already hit a bottom in home values, and another 41 are expected to hit a bottom by September 2013. Among the markets expected to see a bottom within the next year are St. Louis (MO), Cleveland (OH), and Jacksonville (FL). The receding unemployment rate and continually low mortgage rates continue to translate into greater consumer confidence, higher household formation rates, and increased home sales. The increased housing demand, in turn, is stabilizing home values and spurring home builders to increase new housing starts (which have increased 34.8% from year-ago levels).”
Read the full report here.