January 6th, 2014
As further evidence of a strong housing recovery, the cumulative value of U.S. homes in 2013 is projected to be the highest since 2005.
According to Zillow's Real Estate Market Reports, the increase in the cumulative value of U.S. homes at the conclusion of 2013 is estimated to be near $1.9 trillion, leading to a total value of $25.7 trillion for all U.S. homes, as well as a second consecutive year of annual gains.
Zillow Chief Economist Stan Humphries stated that the growth is due to a strong year of housing activity that followed a revitalization of residential real estate beginning in 2012. Price appreciation was spurred on by increased housing demand as a result of lower mortgage rates and improvements in the economy.
"We expect these gains to continue into next year, though at a slower pace," Humphries said. "The housing market is transitioning away from the robust bounce off the bottom we've been seeing, toward a more sustainable, healthier market."
He expects that these trends will result in a healthy pace of price appreciation around 3 to 5 percent annually.