Real estate information website Zillow Inc. (NASDAQ: Z) said this morning that U.S. home prices rose 1.1% month-over-month in October, marking the 12th consecutive monthly increase and the largest single monthly increase since August 2005. For the year, home prices are up 4.7%, the largest annual gain since September 2006.
Of the nation’s 30 largest metropolitan areas, only Chicago experienced a decline in home prices in October. A total of 26 metro areas posted annual gains, including Phoenix (up 22.3%), San Jose (up 11.4%), Denver (up 10.4%), San Francisco (up 9.5%), and Miami-Ft. Lauderdale (up 8.8%).
Zillow’s chief economist said:
Those dubious about the durability of the housing recovery will point to the large role that investors are playing in the recovery, or to the large number of foreclosures yet to hit the market, as factors to be wary of. But the bottom line is that homes are more affordable now than at any time in recent memory, and buyers are seizing this opportunity. We expect to see increasing numbers of potential buyers entering the market as the broader economy continues to recover and household formation picks up further. We’re hopeful that negotiations over the ‘fiscal cliff’ don’t derail this momentum.
The company also noted that foreclosures fell to 5.57 out of every 10,000 homes in October, down 0.8% from September and down 1.9% year-over-year.