The cumulative value of U.S. homes is expected grow by 7.9 percent this year — the biggest annual increase since 2005 — according to an analysis by Zillow, which expects gains to continue into next year, at a slower pace.
“The housing market is transitioning away from the robust bounce off the bottom we’ve been seeing, toward a more sustainable, healthier market,” said Zillow Chief Economist Stan Humphries in a statement. “This will result in annual appreciation closer to historic norms of between 3 percent and 5 percent.”
Zillow said two years of home price appreciation have added $2.8 trillion to the cumulative value of U.S. homes – or 44 percent of the $6.3 trillion drop seen from 2007 to 2011. Source: Zillow