As we enter the New Year, it becomes increasingly important that we evaluate the current state of the real estate market – not only to gauge where the market is heading, but to assess our nation’s economy as a whole. Let’s not forget, the two are highly intertwined.
So what is the current state of the market? It may be better than you think. A new report from Zillow has revealed that homes across the nation have appreciated over 6.7% in 2014 – a number which may seem small but translates to over $1.7 trillion.
According to the study from Zillow, The value of all homes in the US increased by $1.7 trillion in 2014 to $27.5 trillion, according to Zillow.
That’s an appreciation of 6.7% year over year. For reference, home prices increased 8% in 2013.
“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,” wrote Zillow Chief Economist Dr. Stan Humphries in a press release. “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.
Houston led the jump in year-over-year home prices with homes worth $353 billion, a 13% increase. It was followed by Atlanta ($373 billion, up 10.5%) and San Jose ($544 billion, up 10.2%).
Homes in Los Angeles have the highest cumulative value in the country, at $2.3 trillion.
Zillow forecasts an increase in home prices next year at a slower pace.
“As we conclude 2014 and look ahead at 2015 and beyond, housing will play a bigger role in the broader economic recovery, Humphries wrote. “As the job market improves and more households form, more people will search for homes to buy and rent, which will translate into more people buying appliances and home goods and lead to more jobs for home builders and contractors. Housing is well positioned to continue the great strides already made this year.”
Do you think appreciation will slow in 2015? What are your thoughts?
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