Zillow: US home values finish year on good note
Posted on Friday, December 19, 2014 at 8:31:08 AM
Between 2006 and 2011 - the peak years of the Great Recession - home values in the U.S. lost roughly $6.1 trillion, according to analysis by Zillow.
Thankfully for those invested in the housing market, that has reversed course over the past few years. In fact, 2014 has come to end on a good note, with values increasing by $1.7 trillion over the past 12 months, Zillow reported. That is good for a 6.7 percent uptick compared to last year. It is also the third year in a row with increases.
"Looking at the total value of the U.S. housing stock proves just how huge and important the housing sector is to the overall economy," said Zillow chief economist Dr. Stan Humphries. "Virtually nowhere else will you see gains of more than a trillion dollars in one year represent only single-digit percentages of the total market."
According to the National Association of Realtors, 2014 has also seen increased housing mobility in certain demographics. Baby boomers in particular have been able to move into metro areas with a lower cost of living, such as cities in New Mexico, Idaho, Florida and North Carolina.
NAR chief economist Lawrence Yun pointed to the improved economy and stronger home prices as reasons for the potential increase in home sales.