Report: Home Values Recaptured $1.9 Trillion in 2013

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Based on early estimates of home values, properties nationwide are expected to gain almost $1.9 trillion in cumulative value in 2013, according to Zillow.

By the end of the year, analysts for the real estate marketplace predict home values will be a cumulative $25.7 trillion, up 7.9 percent from the end of 2012 (which in turn was up 3.9 percent from 2011).

If the figures work out, it would be the second straight annual gain in total home values and the largest increase since 2005, Zillow says.

“In 2013, the housing market continued to build on the positive momentum that began in 2012, after the housing market bottomed. Low mortgage rates and an improving economy helped bring buyers into the market, boosting demand and driving prices up,” said Zillow chief economist Stan Humphries. “We expect these gains to continue into next year, though at a slower pace.”

What’s more, Zillow researchers believe the value of the nation’s housing stock has recovered about $2.8 trillion—about 44 percent—of the value it lost from 2007 through 2011.

Out of the 485 total metro areas analyzed by Zillow, about 90 percent experienced home value gains in 2013. Of the 30 largest metros, those with the biggest increases in overall value included Los Angeles (which gained $323.1 billion), San Francisco ($159.2 billion), New York ($123.1 billion), Miami ($83.3 billion), and San Diego ($71.5 billion).

Tory Barringer 12/20/13 DSNews.com