Tips on protecting yourself when using free WiFi

Using the Starbucks WiFi or any public WiFi in your hotel room or other place? Be careful. There are hackers out there waiting for your personal information. Here are some tips from

 - Verify the network name. One common attack involves hackers who set up a public Wi-Fi hotspot of their own that resembles the name of the legitimate business’ offering. The hacker’s hotspot allows you to browse the Internet as normal, but all of your emails, site logins, and social media activity are routed through the hacker’s network. Make sure the network you use is the legitimate business one.

  • Check for “https” in the URL bar. If a site address begins with “https,” that is an indication that it has SSL encryption. You will also see a padlock icon in the address bar. When this is present, the data will be encrypted for everything you send and receive. Also, if you get a pop-up window that says “untrusted” security certificate while on public Wi-Fi, experts recommend not visiting the site.
  • Use a VPN. Consider signing up for a VPN – virtual private network – service, which will encrypt all your communications. cites several low-cost options for VPN services like Private Internet Access and TunnelBear, which can be used on both desktop computers and Android and iOS devices.
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Boomerang Buyers are in the market

Boomerang buyers are people who lost their homes during the Real Estate market downturn and have rebuilt their credit and have stable employment and are now re-entering the home buying market. Yes, there are challenges but these buyers are in a unique position to make their dreams come true.

Some boomerang buyers heading back to the housing market may find they have to make down payments of at least 20 percent to qualify for a loan, but others are finding opportunities to put down as little as 3.5 percent or 5 percent.

The wait times for qualifying for a loan can vary depending on the former home owners’ circumstances. Typically, the wait times following a short sale or foreclosure are as follows:
• Seven-year wait for home owners with a previous foreclosure before they can qualify for a new mortgage through mortgage giants Fannie Mae and Freddie Mac. If the foreclosure was  included in a bankruptcy, the borrower has to wait only four years.
• Two-year wait for home owners who underwent a short sale before they’re eligible for another Freddie Mac and Fannie Mae loan.
• Three-year wait for home owners seeking a Federal Housing Administration loan after a foreclosure or short sale. Some home owners who underwent a foreclosure because of at least a 20 percent cut in their pay may be able to qualify for a new mortgage after just a year through FHA’s Back to Work program.

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California Real Estate market snapshot by Property Radar

According to the latest research from Property Radar, the California Real Estate market is still showing the issues of a) slowing sales activity, b) lowering inventories, c) the effects of new lender guidelines and d) increasing regional differences within the state.

Market Activity

California single-family home and condominium sales fell 18.7 percent in January 2014 from December 2013, and were down 11.8 percent from a year ago. Taking a longer-term view, in the past 12 months (February 2013 through January 2014), sales are down 6.5 percent compared with the same 12-month period (February 2012 through January 2013) a year earlier.

To get a clearer picture of current real estate sales trends and to eliminate seasonal factors, we compare January 2014 property sales with January sales in prior years and divide sales into their distressed and non-distressed components. Non-distressed sales fell 18.9 percent in January 2014 from December 2013 but gained 18.2 percent year-over-year. Meanwhile, distressed property sales declined 17.8 percent for the month and were down 49.9 percent for the year.

Despite January’s sizeable falloff in distressed property sales, they still accounted for 25.0 percent of sales, which remains historically high. More importantly, distressed property sales as a percent of total sales remain much higher in counties away from the coastal areas. Of the state’s 26 largest counties, the eight with the highest percentage of distressed property sales — Fresno, Kern, Merced, Sacramento, San Bernardino, San Joaquin, Stanislaus and Tulare — are in non-coastal areas, where distressed property sales represented more than 30 percent of sales; Tulare County was highest at 39.2 percent.

The eight counties with the lowest percentage of distressed property sales — Alameda, Orange, San Diego, San Francisco, San Luis Obispo, Santa Clara, Sonoma, and Ventura — are in coastal areas, where distressed property sales represented less than 23 percent of sales; San Francisco and Orange county were lowest at 9.6 and 16.0 percent, respectively.

Median Prices

In January, the median sale price of a California home fell $17,500, or 4.8%, to $345,000 from $362,500 in December, the largest monthly decline since January 2013. That’s not surprising because seasonal factors often cause large declines in median sale prices in January. Median home prices rose rapidly in 2012 and the first half of 2013 before reaching a plateau in June 2013. From June through December 2013, median prices trended sideways, hovering around $360,000 as the market digested the sudden, 100-basis-point mortgage interest rate increase in May and June 2013. On a year-over-year basis, from January 2013 to January 2014, median prices increased 23.2 percent from $280,000 to $345,000.

Changes in the mix of distressed and non-distressed property sales from 2012 to 2013 continue to influence year-over-year changes in median prices. Distressed property sales decreased from 44.0 percent of total sales in January 2013 to 25.0 percent in January 2014. Meanwhile, non-distressed property sales increased from 56.0 percent to 75.0 percent of total sales. Over that time span, the median price of a distressed California home increased 15.1 percent year-over-year from $225,000 in January 2013 to $259,000 in January 2014. Meanwhile, the median price of a non-distressed home increased 12.1 percent year-over-year, from $339,000 to $380,000.

The following graph highlights median sales prices from January 2005 to January 2014. Aggregate single-family home median sales prices are shown in blue, and distressed and non-distressed median prices are shown in red and green, respectively.

Homeowner Equity

The steady rise in home prices since January 2012 has pushed thousands of previously underwater homeowners in California into positive-equity status so they can refinance or sell their homes. In January 2014, the number of homeowners with more than 10 percent equity in their homes increased 2.0 percent, or 100,000 homeowners; in the past five months that number has increased by 5.1 percent, or approximately 250,000. Since August, the number of moderately to severely underwater homeowners has fallen by 15.9 percent, or approximately 190,000.

Despite the improvement, large numbers of underwater homeowners remain a drag on the California real estate market. In January 2014, nearly 1.3 million (15 percent) of California’s 8.65 million homeowners were underwater while nearly 405,000 (4.7 percent) were barely above water (less than 10 percent equity in their homes). Since home-resale costs represent up to 10 percent of the sale price, these homeowners are effectively underwater. All told, 19.7 percent of homeowners (approximately 1.7 million) are underwater or barely above water — and effectively shut out of the California real estate market.

Several of California’s largest counties continue to struggle with much higher levels of negative equity. In Fresno, Kern, Merced, San Bernardino, San Joaquin, Solano, Stanislaus and Tulare counties, 30 to 36 percent of homeowners are moderately to severely underwater.

Cash Sales

In January 2014, cash sales fell 11.1 percent from December 2013 and are down 21.2 percent in the past 12 months. The decline is cash sales mirrors the decline in total sales due to seasonal factors that typically depress sales this time of year.  Despite the decline in sales volume, cash sales represented 26.1 percent of total sales, up 2.3 percentage points from 23.8 percent in December 2013.

Taking a longer-term view, cash sales as a percent of total sales oscillated between 28 percent and 31 percent from January 2012 through January 2013. They peaked at 33.0 percent in February 2013 and stayed below 25 percent from August through December. Despite recent declines, cash sales remain high from a historic perspective and are an important part of the real estate marketplace.


January 2014 flipping (reselling a property within six months) fell 19.8 percent in part due to seasonal factors that typically depress flipping this time of year. Flipping was down 15.3 percent from a year ago. Flips represented 5.2 percent of total sales in January 2014, up from 5.0 percent in December 2013.

Taking a longer-term view, in 2011, as housing prices trended sideways, flipping was basically flat, ranging from 2.5 percent of sales in January to 2.7 percent in December 2011. In 2012, flipping as a percent of sales began to increase, rising from 2.9 percent in January 2012 and peaking in February 2013 at 5.5 percent. Flipping retreated from February 2013 to June 2013, reaching an interim bottom of 4.1 percent of sales.

In January 2014, within the 26 largest California counties, flipping as a percent of sales was greatest in Contra Costa, Los Angeles, Orange, Sacramento, San Bernardino, San Diego, Santa Cruz and Stanislaus counties; Orange and Stanislaus counties were the highest at 8.2 and 7.6 percent of sales, respectively.

Institutional Investor (LLC and LP) Activity

We approximate institutional investor activity by looking at purchases and sales made by limited liability corporations (LLC) and limited partnerships (LP). From our research all activity by hedge funds, real estate investment trusts and other entities that are pooling large sums of money to invest in residential real estate are doing so in one of these two business structures. While institutional investors represent the bulk of activity, there are some other entities, like relocation companies, that also use these business structures to buy and sell residential real estate. Their activity is included here as well.

Market Purchase Activity

Market purchases by LLCs and LPs posted steady gains from 2008 through 2011, accelerating rapidly in 2012 and reaching a peak in December 2012. Since then, LLC and LP market purchases have been trending lower and are now 52.1 percent below their December 2012 peak. Despite the longer-term decline, January 2014 purchases represented 4.4 percent of total sales up from 4.0 percent in December 2013.

The steady decline in LLC and LP market purchases is being driven primarily by the increase in purchase prices. As prices rise, the potential return on investment (ROI) for holding properties as rentals decreases, making homes less attractive to buy and hold investors.

Trustee Sale Purchase Activity

Purchases by institutional investors (LLCs or LPs) at the trustee sales (foreclosure sales) gained 0.8 percent for the month but are down 73.6 percent from a year ago.

The steady decline in LLC and LP trustee sale purchases is being driven by two factors; 1) the reduced number of trustee sales and 2) the reduction in return on investment (ROI) due to higher prices.

Market Sales Activity

Market sales by LLCs and LPs represented 6.0 percent of total sales in January 2014, up from 5.6 percent in December 2013 and up from 4.8 percent of total sales in July 2013. Despite this increase, total sales by institutional investors has been declining and we see no evidence that the major buyers over the last four years have begun to significantly reduce their accumulated inventory.


California Notices of Default and Notices of Trustee sale gained 12.9 and 6.0 percent, respectively in January 2014 over the prior month. Notices of Default, the first step in the foreclosure process, are up 52.9 percent from a year ago while Notices of Trustee Sale are down 35.7 percent for the year. Foreclosure sales gained 1.9 percent for the month but fell 48.1 percent for the year.

January 2014, foreclosure inventories — Preforeclosure, Scheduled for Trustee Sale, and Bank Owned (REO) — were at or near pre-housing crisis levels. Bank Owned (REO) inventory was nearly unchanged for the month and has trended mostly sideways since August 2013. Meanwhile, Preforeclosure inventory declined 1.5 percent and Scheduled for Trustee Sale inventory fell 5.1 percent. In the past 12 months, Bank Owned (REO) inventory is down 27.2 percent, while Pre-foreclosure and Scheduled for Trustee Sale inventories fell 18.8 and 61.2 percent, respectively.

Madeline’s Take – Director of Economic Research, PropertyRadar

For the sixth-consecutive month, January 2014 California property sales declined year-over-year, suggesting that the May-June 2013 jump in mortgage interest rates isn’t the only factor slowing California real estate sales. I believe two more temporary factors will likely push sales lower through Q2 2014:

  • Lack of for-sale inventory — For-sale inventory has improved since last year but is still not plentiful enough to encourage people to sell. Real estate agents have mentioned that homeowners who want to sell will not put their homes on the market unless there is something for them to buy. The complaint I hear over and over is that it’s slim pickings out there, leaving would-be home sellers on the sidelines waiting for more supply. Builders are responding to pent-up demand by building new homes, but new supply will probably not hit the market until later this year.
  • Consumer Financial Protection Bureau’s (CFPB) Qualified Mortgage (QM) Rule will likely hamper sales in 2014 — I have been told the CFPB’s QM rule that went into effect in January is limiting the pipeline of available buyers. One agent grumbled to me that the average credit score of qualified buyers is well above 750, which effectively shuts out many would-be buyers. While it is too early to tell how much the QM rule will affect sales because the market needs more time to digest the new requirements, early reports point to lower sales in 2014.

Fortunately for the California real estate market, mortgage interest rates have edged lower since late last year due to emerging markets turmoil and a flight to the safety of the U.S. dollar and U.S. Treasuries. As demand for the 10-year Treasury note goes up, yields go down, which puts downward pressure on mortgage interest rates. Emerging markets turmoil is likely to be around for a while, giving the Federal Reserve cover to continue reducing its QE 3 bond purchases without too much risk of pushing up mortgage interest rates and punishing the housing market.

Sean’s Take – Founder/CEO, PropertyRadar

The recent slowing in market activity demands careful attention. The two prior major slow downs occurred in late 2005 and 2010. The decline in sales at the end of 2005 was our first clue that the housing bubble was about to burst. The decline at the end of 2010 was due to the ending of the first time homebuyer tax credit, which reduced demand. Today we sit in a very different situation from either of those events. In 2005 the market was clearly over-valued, with home prices far exceeding what homebuyers could afford to pay – at least without the help of a teaser-rate pay option ARM mortgage. Conversely in 2010, the market was clearly under-valued, with home affordability at bargain levels that had not been seen for years – which after a brief respite led to increases in both prices and activity. Today, I believe values are more reasonable and that we should expect neither the disaster the followed the 2005 activity decline, or the gains that followed the decline in late 2010.

Real Property Report Methodology

California real estate data presented by PropertyRadar, including analysis, charts and graphs, is based upon public county records and daily trustee sale (foreclosure auction) results. Items are reported as of the date the event occurred or was recorded with the California county. If a county has not reported complete data by the publication date, we may estimate the missing data, though only if the missing data is believed to be 10 percent or less of all reported data.

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Thinking about hiring a listing agent to sell your house?

You’ve decided to sell your house. You begin to interview potential real estate agents to help you through the process. You need someone you trust enough to:

1) Set the market value on possibly the largest asset your family owns (your home).

2) Set the time schedule for the successful liquidation of that asset.

3) Set the fee for the services required to liquidate that asset.

An agent must be concerned first and foremost about you and your family in order to garner that degree of trust.  Make sure this is the case.

Here are TWO things you should not want to hear from the listing agent so be careful if the agent you are interviewing begins the interview by:

Bragging about their success Bragging about their company’s success

An agent’s success and the success of their company can be important considerations when deciding on the right real estate professional to represent you in the sale of the house. However, you first need to know they care about what you need and what you expect from the sale. If the agent is not interested in first establishing your needs, how successful they may seem is much less important.

Look for someone with the ‘heart of a teacher’ who comes in prepared well enough to explain the current real estate market and patient enough to take the time to show how it may impact the sale of your home. Not someone only interested in trying to sell you on how great they are.

You have many agents from which to choose. Pick someone who truly cares.

Let me know if I can help in any way.

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Foreclosure inventory continues to decline in Nevada County

Foreclosures are on the decrease in Nevada County. As the foreclosure crisis continues to recede, some parts of the country remain at elevated levels. Five states now account for nearly half of all the completed foreclosures in the nation —Florida, Michigan, California, Texas, and Georgia, according to CoreLogic’s latest foreclosure report.

Foreclosures made up 10 percent of sales in December, while short sales comprised 4 percent of sales, according to the National Association of REALTORS®’ existing-home sales report for December.

On average, foreclosures sold for an average discount of 18 percent below market value in December, while short sales were discounted 13 percent, NAR reports.

CoreLogic reported this week that completed foreclosures fell 14 percent in December year-over-year.

Inventories are also falling. About 837,000 homes in the United States in December were in some state of foreclosure or known as foreclosure inventory, compared with 1.2 million in December 2012 – a 31 percent year-over-year decrease, CoreLogic notes.

The five states with the highest foreclosure inventories as percentage of all homes with a mortgage are Florida (6.7%), New Jersey (6.5%), New York (4.9%), Connecticut (3.6%), and Maine (3.6%).

Meanwhile, the two states with the lowest foreclosure inventories as percentage of all homes with a mortgage were Wyoming (0.4%) and Alaska (0.5%).

“Clearly, 2013 was a transitional year for residential property in the United States,” says Anand Nallathambi, president and CEO of CoreLogic. “Higher home prices and lower shadow inventory levels, together with a slowly improving economy, are hopeful signals that we are turning a long-awaited corner. The housing market should continue to heal in 2014, but we expect progress to remain very slow.”

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Q2 Report – Delinquency rate shrinks again – lowest % in years!

Underwater homeowners are finally getting a break here in Nevada County as values continue to climb. The national mortgage delinquency rate sunk to 4.09 percent in the second quarter of this year, representing a near 26 percent decrease from the same quarter last year, according to data from TransUnion.
The delinquency rate, which includes loans that are 60 days or more past due, also showed a 10 percent quarterly decline.
“This marks the third quarter in a row where we have posted all-time highs in terms of delinquency improvement and that is very welcome news for both borrowers and their lenders,” said Tim Martin group VP in TransUnion’s financial services business unit. “Many of the delinquent mortgages we have been tracking have been delinquent for a very long time, so it is encouraging to see this number is coming down so significantly.”
The reduction was widespread across the country, with all states, plus the District of Columbia, experiencing annual declines in their delinquency rates. States showing significant improvements were also states plagued with a high rate of 60-plus delinquencies.
For example, Florida and Nevada held the highest delinquency rates, at 9.87 percent and 7.74 percent, respectively. Though, delinquencies decreased by more than 26 percent in each state. The three states that led with the biggest annual declines overall were Arizona (-41.7 percent), California (-40.8 percent), and Colorado (-35 percent).
Furthermore, 95.4 percent of metro areas tracked saw annual declines in their delinquency rate in the second quarter, up from 91 percent in the first quarter of this year.
The downfall was the largest in Phoenix, where the rate plummeted 47.7 percent. Other metros that experienced steep drops included San Francisco (-43.7 percent), Denver (-38.9 percent), Los Angeles (-38.9 percent), and Detroit (-38.8 percent).
According to TrasnUnion’s projection for the third quarter, the delinquency rate should slip below 4 percent for the first time since 2008.
Martin noted factors such as improving prices and low interest rates should help with reducing the delinquency rate throughout the year, but warned “the recent and sizable increase in mortgage interest rates may eventually slow the progress.”

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More good news – Q1 report – Housing prices up double-digits!

In its first-quarter report, the CoreLogic Case-Shiller Home Price Indexes experienced a double-digit national price gain for the first time since the housing bubble that took place seven years ago.
Prices increased an average of 10.2 percent from the first quarter of last year to the first quarter of this year across the 380 metro markets tracked.
“Record levels of affordability, a slow improving job market, and very small inventories of new and existing homes for sale will continue to drive U.S. home price appreciation during the summer,” said David Stiff, chief economist for CoreLogic Case-Shiller.
However, the economist does predict a slow-down in appreciation over the next year. From the first quarter of this year to the first quarter of next, the Case-Shiller Indexes predict a 6.5 percent price gain.
Markets currently experiencing the greatest price appreciation are some of those that “were at the center of the housing bubble,” according to CoreLogic.
Several California markets are among the top markets for price gains over the past year.
San Jose, California, posted a 23.7 percent price gain; San Francisco posted a 21.1 percent price gain; and Sacramento, California, experienced a 21.0 percent price gain.
Phoenix, Arizona, and Las Vegas recorded price increases of 22.8 percent and 20.9 percent, respectively.
However, of these notable markets, San Francisco is the only one where price gains are expected to continue in the double digits over the next year. Case-Shiller predicts a 10.5 percent gain in the metro.
Additionally, Stiff staves off any concerns of growing bubbles, saying, “there is less need for concern now since home prices remain 26 percent below their peak nationally and are even lower in many metro markets.”
The cause of many of the double-digit price increases across the country is low inventory. Phoenix, Sacramento, and Detroit all have just three months supply.
At the other end of the spectrum, a few metros did experience price declines over the year ending in March 2013, but “it is likely that home prices in these cities will turn positive by the end of the year,” Stiff said.

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Case-Schiller index posts highest gains in almost 5 years!

Home prices rose to their highest levels in almost five years in May, increasing by a non-seasonally adjusted 2.5 percent, according to the Case-Shiller Home Price Indices released Tuesday.
The 20-city index was up 12.2 percent from a year earlier, and the companion 10-city index was up 11.8 percent. For the month, the 10-city index rose 2.5 percent and the 20-city index was up 2.4 percent. The two surveys have improved month-over-month and year-over-year for 12 consecutive months.
The 10-city index rose to its highest level since September 2008, and the 20-city index to its highest level since October 2008.
All 20 cities included in the survey improved both month-to-month and year-to-year.
The home values found in the Case-Shiller report continued to shrug off discounts in the sales of distressed properties. According to the National Association of Realtors (NAR), distressed properties—foreclosures and short sales—accounted for 18 percent of home sales transactions in May (11 percent foreclosures and seven percent short sales). Foreclosures, NAR said, sold for an average discount of 15 percent below market value, while short sales were discounted 12 percent.
The home values also improved despite higher mortgage rates, which could have both a positive and negative impact: Rising rates themselves might bring prices down as buyers look for affordable monthly payments, but they may also increase demand as buyers try to lock in rates before further increases. The increased demand against weak inventories would send prices up.
NAR reported the median price of an existing single-family home rose 5.9 percent in May, an annual gain of 12.6 percent. The monthly Case-Shiller Home Price Indices use the “repeat sales method” of index calculation, which includes data on properties that have sold at least twice in order to capture the appreciated value of each specific sales unit, according to the description of the index on the S&P website.
While good news for home sellers, the continued sharp increases—the indices have shown double-digit year-year increases for three months in a row—are likely to revive concerns of a growing housing bubble.
The Case Shiller indices have gone up for six straight months and 12 times in the last 14 months; each index dipped last October and November.
Overall, the 10-city index rose to 169.69—its highest level since September 2008, when it was 173.35—while the 20-city index improved to 156.14, the highest level since October 2008, when it was 158.09. The index values in fall 2008, though, were continuing to decline, while the indices reported Tuesday reflect a market on the rise.
Monthly increases were led by San Francisco, where prices rose 4.3 percent, marking the 15th straight month of price increases in that city. Prices rose more than 3 percent in May in four other cities: Chicago, up 3.7 percent; Atlanta, up 3.4 percent; and San Diego and Seattle, where prices rose 3.1 percent.
Prices have improved for 20 straight months in Phoenix, 15 straight months in Los Angeles, and 14 straight months in Las Vegas.

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Distressed property sales down except short sales are UP

With the exception of short sales, activity for distressed sales was relatively calm in June, according to data from RealtyTrac.
Last month, institutional investors, or non-lending entities that bought at least 10 properties in the last 12 months, accounted for 9 percent of residential sales. The share represents a slight increase from 8 percent in May, and a small decrease from 10 percent in June 2012.
REO sales remained stable, accounting for 9 percent of sales, down from 10 percent in May and unchanged from a year ago.
Cash sales also saw little change in June. About 30 percent of residential sales were all-cash transactions compared to 31 percent in May and June 2012. Though, several Florida metros held a notably high share of cash sale transactions, including Cape Coral-Fort Myers (70 percent), Miami (64 percent), Sarasota (59 percent), and Tampa (58 percent).
Meanwhile, short sales saw a significant increase over the last year, representing 14 percent of all sales in June, up from 8 percent a year ago. In May, short sales represented 15 percent of sales.
“The U.S. housing market is slowly but surely moving toward a more normalized and sustainable pattern after a flurry of institutional and cash buyers flocked to residential real estate last year, pushing up prices and picking clean the best inventory available in many areas,” said Daren Blomquist, VP at RealtyTrac.
Distressed inventory may not be as widely available, but there are still many markets dealing with an oversupply of foreclosures.
“Markets where sales increased in June tend to be in states with that lingering distressed inventory, whereas markets where sales decreased tend to be in states that more quickly absorbed distressed inventory thanks to a relatively fast foreclosure process and strong demand,” Blomquist explained.
After tracking sales prices, RealtyTrac found the national median price of a home rose to $168,000 in June, up monthly and yearly by 3 and 5 percent, respectively.
When compared to non-distressed sales, which average a median sales price $181,500, RealtyTrac reported foreclosures or bank-owned properties sell at a discount of 34 percent. States with steeper discounts included Ohio (58 percent), Michigan (48 percent), Illinois (47 percent), Massachusetts (46 percent), and Wisconsin (45 percent).

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Zillow says 2nd quarter housing values increase across the country!

After a somewhat slow first quarter, the national housing recovery took the pace up a few notches in Q2, Zillow reported.
According to the company’s second-quarter Real Estate Market Reports, the U.S. Zillow Home Value Index (HVI) rose to $161,100 as of the end of June—up 2.4 percent quarter-over-quarter and 5.8 percent year-over-year.

The second quarter’s increase was the largest annual gain since August 2006 and the largest quarterly gain since the fourth quarter of 2005—as well as the second-largest quarterly gain since 2004. National home values rose only 0.25 percent during the first quarter.
While home value appreciation accelerated in Q2, it also spread to more areas across the country, reaching markets in the Northeast, Midwest, and Southwest that had previously had trouble keeping pace.
All of the top 30 largest metros covered by Zillow saw annual appreciation as of the end of the second quarter, and Zillow believes all are coming back from their respective troughs.
Metros with the largest annual gains in Q2 included Sacramento (29.5 percent), Las Vegas (29.4 percent), and San Francisco (25.5 percent). For more info please go to the Zillow homepage at
While some areas—particularly those where annual appreciation is approaching 30 percent—may seem like they’re experiencing a bubble, Zillow senior economist Svenja Gudell explained that kind of market behavior won’t last.
“Investors are starting to pull out of some markets and regular buyers are coming back, and more inventory is slowly but surely coming on line, both of which will contribute to slowdowns in appreciation,” Gudell explained. “Additionally, in some overheated markets, rapid home value increases coupled with rising mortgage rates will lead to housing prices and financing costs outpacing local income growth, which will also contribute to a moderation of the market.”
Over the next 12 months, Zillow expects home values to rise another 5 percent. Of the 30 largest markets, 29 are expected to see appreciation, with New York being the only exception.
In the rental market, national rents fell quarter-over-quarter by 0.5 percent to $1,282—the first quarterly decline after nine consecutive quarters of rents either increasing or remaining flat. Year-over-year, national rents were up 1.6 percent as of the end of the second quarter.

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