The Zillow Home Value Index increased 1.1 percent month-over-month in January to $269,039, matching December’s record for monthly growth in data reaching back to 1996.
Zillow said annual home value appreciation in January was 9.1 percent -- the largest annual growth recorded since June 2006.
“Homebuying demand has pushed the pedal to the metal for price appreciation this winter,” Zillow Senior Economist Jeff Tucker said in a release. “Normally we'd be talking about the spring selling season ramping up, but it looks more like last summer’s selling season simply never ended. Buyers eager to secure more space and lock in today’s rock-bottom interest rates are having to move quickly and aggressively to win out in this competitive market.”
Zillow said home values rose in all 50 of the largest U.S. metros, led by Phoenix (17.1 percent), San Jose, Calif. (14.2 percent) and Austin, Texas (13.7 percent). The slowest growth was seen in San Francisco (5.3 percent), Chicago (6.7 percent), and San Antonio (6.7 percent).
Zillow said it expect home values to grow 10.1 percent in the next 12 months. Existing home sales are expected to reach 7 million in 2021, 24.8 percent more than in 2020.