Typical home values in the U.S. in December climbed 8.4 percent year-over-year to $266,104, the highest annual increase since January 2014, according to Zillow’s latest market report.
Zillow said home value growth over the last quarter in the U.S. was 3.2 percent -- higher than at any time since the Zillow Home Value Index began in 1996. Austin, Texas saw 5.3 percent growth over the previous quarter, while Phoenix, San Diego, and Salt Lake City had 5.1 percent growth.
“The housing market ended 2020 with an exclamation point, as home values rose sharply near the end of the year at their fastest quarterly rate on record,” Zillow Senior Economist Jeff Tucker said. “Sales are taking place at a rapid clip as momentum gathering in the market since June is still pushing forward at full force and is expected to continue for the foreseeable future. Although prices are skyrocketing, record-low mortgage rates keep bringing buyers to the table by keeping monthly payments in reach.”
According to the report, Phoenix led all major metros in yearly home value growth (15.3 percent), followed by San Jose, Calif. (15.2 percent), Salt Lake City (13.2 percent), Seattle (13 percent) and Austin (12.9 percent).
Monthly home value growth for the U.S. in December held steady at 1.1 percent, ranging from 0.6 percent in Las Vegas to 1.8 percent in Salt Lake City.
Zillow said for-sale listings’ median time on market for the U.S. in December stayed at 14 days, just one day longer than monthly lows in the fall.