U.S. homes have recovered almost half the value they lost in the housing crash, with the overall value of U.S. homes rising by about $1.9 trillion in 2013, the largest annual gain since 2005, according to a new report from real estate portal Zillow.
In the Boston area, homes gained $45.6 billion in total value this year, up from a gain of $20.1 billion in 2012. Overall, the cumulative value of all homes in Greater Boston is $568.5 billion.
Zillow calculated the gains by measuring the difference between cumulative home values as of the end of 2012 and anticipated cumulative home values at the end of 2013. The overall value of all homes in the U.S. at the end of 2013 is expected to be approximately $25.7 trillion, up 7.9 percent from the end of 2012. Last year, cumulative home values rose 3.9 percent from 2011.
The gain in cumulative home values is the second annual gain in a row, after home values fell every year from 2007 through 2011. Between 2007 and 2011, the total value of the U.S. housing stock fell by $6.3 trillion. Over the past two years, U.S. homes have gained back $2.8 trillion, or about 44 percent of the total value lost during the recession, according to Zillow’s calculations.
"In 2013, the housing market continued to build on the positive momentum that began in 2012, after the housing market bottomed. Low mortgage rates and an improving economy helped bring buyers into the market, boosting demand and driving prices up," Zillow Chief Economist Stan Humphries said in a statement. "We expect these gains to continue into next year, though 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. This will result in annual appreciation closer to historic norms of between 3 percent and 5 percent."
Almost 90 percent of the 485 total metro areas analyzed nationwide experienced home value gains in 2013. Of the 30 largest metros, those with the largest gains in overall value as measured by total dollar volume include Los Angeles ($323.1 billion), San Francisco ($159.2 billion), New York ($123.1 billion), Miami ($83.3 billion) and San Diego ($71.5 billion). Boston, the tenth-largest metro, had the tenth-largest absolute gain in home values.
