The total value of all the homes in the United States is expected to end 2014 at $27.5 trillion, a 6.7 percent increase from last year and the third consecutive overall increase, according to Zillow. Homes lost $6.1 trillion in value between December 2006 and December 2011.
The cumulative increase in home values is slightly smaller than 2013's 8 percent increase, and that kind of gradual slowing is a sign of the times as the market heads for slower expected gains in 2015. Over the second half of 2014, inventory increased in many U.S. markets and, with more homes on the market, home value appreciation slowed.
"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," says 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. As we conclude 2014 and look ahead at 2015 and beyond, housing will play a bigger role in the broader economic recovery. 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."
Zillow's November Real Estate Market Reports showed home values up 6 percent from November 2013 to a Zillow® Home Value Index (ZHVI)i of $177,600. Looking ahead, as more homes come on the market, growth in home values is expected to slow, to a 2.4 percent pace through November 2015, according to the Zillow Home Value Forecast. There were 11.8 percent more homes for sale in November 2014 than a year prior, but inventory fell slightly in many major markets from October to November.
Among major markets, home values were up the most year-over-year in Miami (13.6 percent), Atlanta (12.8 percent), Houston (11.9 percent), Orlando (11.9 percent), and Las Vegas (11.5 percent). Values were higher than last November in almost every major U.S. metro.
National rents were up in November from a year ago, up 3.4 percent to a Zillow Rent Index (ZRI) of $1,342.