JANUARY2013

Overview

Highlights

Zillows January Real Estate Market Reports, released today, show that national
home values rose 0.7% from December to January to $158,100 (Figure 1).
January 2013 marks the 15th consecutive month of home value appreciation.
On a year-over-year basis, home values were up 6.2% (Figure 2) from January
2012 a rate of annual appreciation we havent seen since July 2006 (when
the rate was 7.5%), before the peak of the housing bubble. Rents are up 4.3%
on a year-over-year basis (Figure 3). The Zillow Home Value Forecast calls for
3.3% appreciation nationally from January 2013 to January 2014. Most markets
have already hit a bottom with only 9 out of 260 not projected to hit a bottom
within the next year and 78 out of the 260 markets covered are forecasted to
experience home value appreciation of 3% or higher.

Zillows January Real Estate

Market Reports cover
374 metropolitan and
micropolitan areas, of which
248 (66%) showed monthly
home value appreciation and
284 (76%) saw annual home
value appreciation.

Figure 1: U.S. Zillow Home Value Index

January 2013
$200,000

April 2007:
$193,900

$180,000

The Zillow Rent Index (ZRI)

shows national rents are up
4.3% annually. Markets that
saw extremely strong annual
rent appreciation include
Denver (7.5%), Boston (6.3%)
and San Francisco (5.4%).

$158,100

$160,000

$140,000

$120,000

$100,000

1998

2000

2002

2004

2006

2008

2010

2012

2014

Figure 2: Change in U.S. Zillow Home Value Index

1.0%
0.7%
6.2%

5.0%

0.5%
0.0%

0.0%
-0.5%
-5.0%

-1.0%

-10.0%

Month-over-Month Change in ZHVI

Year-over-Year Change in ZHVI

January 2013

10.0%

National home values rose

0.7% from December to
January. This marks the 15th
consecutive month of home
value appreciation.

The housing market is off to

a strong start in 2013 with
many areas across the nation
seeing appreciation rates
above historically normal
levels. Most metropolitan
areas have hit a bottom - 239
out of 260 metros and
more are projected to hit a
bottom this year. The Zillow
Home Value Forecast calls for
3.3% appreciation nationally
from January 2013 to January
2014.

-1.5%
2000

2002

2004

2006

2008

ZHVI MoM

2010

2012

2014

ZHVI YoY

www.zillow.com/research/

JANUARY2013

Zillow Real Estate Market Report

Home Values

Foreclosures

The January Zillow Real Estate Market Reports, the first

measure of January national home value trends available
anywhere, cover 374 metropolitan and micropolitan
areas, more markets than any other available source of
real estate data. In January, 248 (66%) of the 374 markets
showed monthly home value appreciation, and 284 (76%)
of the 374 markets saw annual home value appreciation.
Among the top 30 metros, 27 experienced monthly home
value appreciation, and all 30 saw annual increases. The
only monthly declines among the top 30 metros took
place in St. Louis (-0.2%) and Orlando (-0.4%). Leading the
pack in positive monthly appreciation were San Francisco,
Tampa, San Diego and Riverside, which experienced 2%,
2%, 1.8% and 1.7% monthly home value appreciation,
respectively. Overall, national home values were down
18.5% from their peak in April 2007 and up 6.5% from the
post-recession trough in October 2011.

The rate of homes foreclosed continued to decline in

January with 5.54 out of every 10,000 homes in the
country being liquidated. Nationally, foreclosure re-sales
continued to fall, making up 13.05% of all sales in January
(Figure 4). This is down 3.6 percentage points from
January 2012 and down 6.9 percentage points from its
peak level of 19.9% in March 2009.
January 2013
Number of Homes Foreclosed (out of 10,000)

Figure 3: U.S. Zillow Home Value Index and U.S. Zillow Rent Index

Figure 4: U.S. Homes Foreclosed

10.0

8.0

6.0

5.5
4.0

2.0
0.0
1999

January 2013
$170,000

$1,350

$165,000

$1,300

ZHVI

$158,100

$155,000
$150,000

$1,250
$1,200
$1,150

$145,000

$1,100
Dec-2010

Aug-2011

Apr-2012

Zillow Home Value Index

Dec-2012
Zillow Rent Index

Rents
The Zillow Rent Index (ZRI) covers 471 metropolitan areas
and shows year-over-year gains for 310 metropolitan
areas covered by the ZRI. The rental market remains
strong (Figure 3), even as the housing market regains
strength. Markets that saw extremely strong annual rent
appreciation include Denver (7.5%), Boston (6.3%) and
San Francisco (5.4%). Investors are still playing a big role
in the housing recovery, as they purchase homes (many
times lower priced homes or distressed inventory) and
convert these into rental units to satisfy the increase
in demand for rental housing. Their involvement in the
marketplace has often squeezed out first-time buyers and
has contributed to high home value appreciation.

2003

2005

2007

2009

2011

2013

Outlook
ZRI

$1,271

$160,000

2001

The housing market is off to a strong start in 2013 with

many areas across the nation seeing appreciation rates
above historically normal levels. Most metropolitan areas
have hit a bottom - 239 out of 260 metros and more
are projected to hit a bottom this year. The Zillow Home
Value Forecast calls for 3.3% appreciation nationally
from January 2013 to January 2014. Negative equity
as of the end of 2012 stands at 27.5% nationally and is
trending down as home values increase. In 2012, almost
2 million homeowners were freed from negative equity.
Unfortunately, high levels of negative equity will remain
with us for the next few years given the extent of home
value declines in hard-hit markets like Phoenix and Las
Vegas. While we do expect some additional supply of
homes on the market this year as new construction
continues to ramp up and as many of those recently
freed from negative equity choose to sell their homes, we
expect demand to continue to outpace even this increase
in supply, therefore leading to continued inventory
shortages in some markets.

www.zillow.com/research/

JANUARY2013

Zillow Real Estate Market Report

National Summary

ZHVI ($)

Feb
2012

Mar
2012

Apr
2012

May
2012

Jun
2012

Jul
2012

Aug
2012

Sep
2012

Oct
2012

Nov
2012

Dec
2012

Jan
2013

149,300

150,000

150,500

150,800

151,800

152,000

152,400

153,600

155,100

155,800

157,000

158,100

MoM

0.3%

0.5%

0.3%

0.2%

0.7%

0.1%

0.3%

0.8%

1.0%

0.5%

0.8%

0.7%

YoY

-2.6%

-1.4%

-0.4%

0.3%

1.3%

1.5%

2.0%

3.2%

4.5%

4.9%

5.5%

6.2%

Change from Peak

-23.0%

-22.6%

-22.4%

-22.2%

-21.7%

-21.6%

-21.4%

-20.8%

-20.0%

-19.6%

-19.0%

-18.5%

1,213

1,211

1,230

1,252

1,275

1,278

1,281

1,282

1,280

1,278

1,274

1,271

MoM

-0.5%

-0.2%

1.6%

1.8%

1.8%

0.2%

0.2%

0.1%

-0.2%

-0.2%

-0.3%

-0.2%

YoY

2.0%

2.3%

3.0%

4.4%

5.1%

5.4%

6.0%

6.2%

5.4%

4.5%

4.2%

4.3%

17.3%

17.4%

16.5%

15.1%

14.0%

13.1%

12.5%

12.2%

12.0%

11.7%

11.6%

13.0%

ZRI ($)

Foreclosure Re-sales

Largest 30 Metropolitan Statistical Areas Covered by Zillow (Data for January 2013)
ZHVI ($)

ZHVI
MoM

ZHVI
YoY

Peak
Month

Change
from ZHVI
Peak

New York, NY

346,100

0.3%

1.4%

2006-04

-23.8%

Los Angeles, CA

421,800

1.4%

9.7%

2006-03

Chicago, IL

162,200

0.1%

1.6%

2007-01

Dallas-Fort Worth, TX

131,800

0.5%

5.9%

Philadelphia, PA

188,700

0.4%

1.6%

Washington, DC

327,100

0.7%

Miami-Fort Lauderdale, FL

155,900

1.3%

Atlanta, GA

115,500

1.0%

Boston, MA

319,500

0.2%

San Francisco, CA

538,900

Detroit, MI

82,600

Riverside, CA
Phoenix, AZ

Projected
Change in ZHVI,
Foreclosure
Jan. 2013 - Jan. Bottom in Home
Re-Sales (%)
2014
Values

ZRI ($)

ZRI
YoY

0.4%

2012 Q1

1.6%

-31.9%

2,296

2.9%

7.6%

2012 Q1

15.6%

-37.6%

1,512

4.1%

0.0%

2012 Q1

2007-10

-8.7%

1,318

4.2%

3.8%

2011 Q4

13.8%

2007-04

-18.1%

1,474

0.6%

1.7%

2012 Q1

7.5%

6.5%

2005-12

-24.3%

2,054

3.1%

2.0%

2011 Q1

9.4%

10.9%

2006-04

-49.8%

1,618

2.7%

4.4%

2011 Q4

1.9%

2007-04

-33.9%

1,125

0.7%

2.1%

2012 Q3

4.8%

2005-10

-15.6%

1,950

6.3%

0.8%

2011 Q4

2.0%

17.2%

2006-01

-24.2%

2,522

5.4%

9.1%

2012 Q1

1.3%

11.3%

2005-05

-47.1%

1,030

3.8%

4.0%

2011 Q4

201,300

1.7%

12.0%

2006-04

-50.3%

1,578

2.9%

12.5%

2012 Q1

23.4%

159,300

0.9%

21.9%

2006-03

-43.6%

1,152

2.3%

7.4%

2011 Q3

17.8%

Seattle, WA

273,000

0.8%

7.6%

2007-06

-28.1%

1,610

2.2%

5.8%

2012 Q1

11.0%

Minneapolis-St Paul, MN

175,000

0.2%

7.4%

2006-04

-27.1%

1,439

4.1%

0.9%

2012 Q1

13.2%

San Diego, CA

381,900

1.8%

12.9%

2006-01

-28.9%

2,101

0.9%

7.5%

2012 Q1

15.0%

Tampa, FL

116,300

2.0%

9.1%

2006-04

-46.9%

1,186

2.7%

5.3%

2011 Q4

St. Louis, MO

126,700

-0.2%

1.4%

2007-03

-17.5%

1,094

1.0%

0.2%

2011 Q4

Baltimore, MD

222,100

0.0%

2.4%

2007-03

-22.4%

1,662

4.1%

1.3%

2012 Q1

8.1%

Denver, CO

229,800

0.6%

12.6%

2006-05

-0.3%

1,528

7.5%

2.3%

2011 Q2

13.6%

Pittsburgh, PA

112,900

1.0%

2.9%

2013-01

0.0%

942

-3.0%

2.4%

2009 Q1

6.0%

Portland, OR

231,500

0.5%

8.1%

2007-05

-20.7%

1,390

5.1%

3.5%

2011 Q4

10.6%

Sacramento, CA

228,600

1.5%

13.7%

2005-10

-45.8%

1,456

3.5%

11.0%

2012 Q1

18.7%

Orlando, FL

125,000

-0.4%

7.1%

2006-05

-52.1%

1,204

1.7%

1.9%

2012 Q1

Cincinnati, OH

122,100

0.1%

0.9%

2008-01

-14.7%

1,073

-2.4%

1.0%

2013 Q2

6.5%

Cleveland, OH

109,800

0.2%

0.8%

2005-11

-22.9%

1,087

1.6%

1.4%

2012 Q1

22.5%

Las Vegas, NV

131,100

1.3%

16.2%

2006-04

-57.3%

1,142

-1.0%

5.0%

2012 Q1

17.0%

San Jose, CA

639,500

1.2%

16.8%

2006-02

-13.5%

2,668

5.5%

6.3%

2009 Q2

8.7%

Columbus, OH

127,600

0.6%

4.5%

2006-04

-12.4%

1,153

0.3%

1.6%

2012 Q1

21.1%

Charlotte, NC

138,100

0.4%

3.4%

2008-04

-11.5%

1,138

6.3%

0.6%

2011 Q2

12.8%

www.zillow.com/research/

15.5%

JANUARY2013

Zillow Real Estate Market Report

Zillow Home Value Index (ZHVI)

The Zillow Home Value Index is the median Zestimate valuation for a given geographic area on a given
day and includes the value of all single-family residences, condominiums and cooperatives, regardless
of whether they sold within a given period. The ZHVI at the national level is calculated as the median
Zestimate of all homes in the U.S. It is expressed in dollars.

Zillow Rent Index (ZRI)

The Zillow Rent Index is the median Rent Zestimate (estimated monthly rental price) for a given
geographic area on a given day, and includes the value of all single-family residences, condominiums,
cooperatives and apartments in Zillows database, regardless of whether they are currently listed for
rent. It is expressed in dollars.

Foreclosure Re-sales / REOs

Homes Foreclosed

Sold for Loss (%)

The percentage of sales in a given geography that were foreclosure re-sales (a sale of a home that
occurred within 12 months after the home was foreclosed). This metric captures mostly bank-owned
sales. Reported monthly and compiled from data dating back to 1998. Each data point is a weighted
average of the value in the prior three months (with the most recent month weighted highest). The
historical percent of foreclosure re-sales is re-computed twice a month.
Also referred to the foreclosure liquidation rate. The number out of 10,000 homes in a given geography
that have been foreclosed on in a given month. A foreclosure is when a homeowner loses their home
to their lending institution or if it is sold to a third party at an auction. Reported monthly and compiled
from data dating back to 1998. Each data point is a weighted average of the value in the prior three
months (with the most recent month weighted highest). The historical percent of homes foreclosed is
re-computed twice a month.
The percentage of homes in a given geography that sold for less than the previous purchase price. This
excludes foreclosed homes and sales and the consecutive sale of the foreclosed home. Reported monthly
and compiled from data dating back to 1998. Each data point is a weighted average of the value in the
prior three months (with the most recent month weighted highest). The historical percent of homes sold
for a loss is re-computed twice a month.

Peak Month

The month that recorded the highest Zillow Home Value Index to date. For the United States, the peak
month was April 2007.

Change from Peak

The percentage change from the month that recorded the highest Zillow Home Value Index to the
current month.

About Zillow Real Estate Market Reports

The Zillow Real Estate Market Reports are a monthly overview of the national and local real estate markets. The reports are compiled by Zillow Real
Estate Research. For more information visit www.zillow.com/research. The data in Zillows Real Estate Market Reports is aggregated from public
sources by a number of data providers for 923 metropolitan and micropolitan areas dating back to 1996. Mortgage and home loan data is typically
recorded in each county and publicly available through a county recorders office.
About Dr. Stan Humphries, Zillow Chief Economist
Humphries is in charge of data and analytics. He spearheaded the creation of the Zestimate, its algorithm and, in turn, the Zillow Home Value
Index. Humphries has a Bachelor of Arts from Davidson College, a Masters of Science in Foreign Service from Georgetown University, and a Ph.D. in
Government from the University of Virginia.
About Dr. Svenja Gudell, Zillow Senior Economist
Gudell helps oversee negative equity valuations, forecasting and foreclosure research, among other research topics. She is also involved in research
collaborations with other organizations and academics. Gudell holds a Ph.D. in Finance from the University of Rochester, a Masters of Arts in
Economics from New York University and a Bachelor of Arts from the University of Rochester.

About Zillow, Inc.

Zillow, Inc. (NASDAQ: Z) operates the largest home-related marketplaces on mobile and the Web, with a complementary portfolio of brands
and products that help people find vital information about homes, and connect with the best local professionals. In addition, Zillow operates an
industry-leading economics and analytics bureau led by Zillows Chief Economist Dr. Stan Humphries. Dr. Humphries and his team of economists and
data analysts produce extensive housing data and research covering more than 350 markets at Zillow Real Estate Research. The Zillow, Inc. portfolio
includes Zillow.com, Zillow Mobile, Zillow Mortgage Marketplace, Zillow Rentals, Zillow Digs, Postlets, Diverse Solutions, Buyfolio, Mortech
and HotPads. The company is headquartered in Seattle.
Zillow.com, Zillow, Zestimate, Postlets and Diverse Solutions are registered trademarks of Zillow, Inc. Buyfolio, Mortech, HotPads and Digs are trademarks of Zillow, Inc.

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