The 5.9 percent annual
appreciation rate far exceeded yearly rates of appreciation typically
associated with healthy markets and represents the largest annual gain
since August, 2006 – near the peak of the housing bubble. Historically,
housing markets can expect annual home value appreciation of roughly 3
percent on average, according to Zillow research. Looking ahead, the
Zillow Home Value Forecast shows home values increasing by 3.3 percent
in 2013, a yearly appreciation rate more in line with historic norms.
As home values rose in the
fourth quarter, foreclosure activity abated, with 5.22 of every 10,000
homes nationwide facing foreclosure during December 2012. That was down
2.2 homes per 10,000 year-over-year and down 1.2 homes from the previous
quarter. Foreclosure re-sales stood at 12 percent of the market, down 4
percent from the end of 2011 and down 0.3 percent from the third
quarter.
In the rental market, national
rents fell 0.6 percent in the fourth quarter compared with the third
quarter, but ended 2012 up 4.2 percent year-over-year. The Zillow Rent
Index stood at $1,274 at the end of December.
