Exterior building products manufacturer Ply Gem opened its booth at the 2013 International Builders' Show on Jan. 22 with a live presentation on the 2013 housing industry outlook by Dr. Svenja Gudell, senior economist with Zillow, a leading real estate information marketplace.
Home values are up and showing signs of improvement, according to a report produced by Zillow's economics and analytics group. The report compiles housing data and econometric analysis on more than 360 markets.
"A sustainable housing recovery has taken hold, benefiting buyers and sellers alike, as well as professionals in the housing industry," said Dr. Gudell. "Metro areas are showing historically high affordability and home values are steadily increasing after prolonged decline. Though negative equity remains a problem, we think this year will continue to bolster confidence in the market's resurgence."
Cumulative U.S. home value increased for the first time in more than five years, gaining $1.3 trillion in 2012, according to Zillow's most recent data. Following that 6 percent increase from 2011's $792 billion loss, Zillow is predicting that the cumulative U.S. home value will increase again in 2013.
Median home values also saw a steady increase in 2012, after losing 23 percent (peak to trough) of their total value since they peaked in May 2007, according to Zillow's report. Coming in at $156,200, average homes values are now back to 2004 levels after hitting a low in 2011.
Combined with predicted increases in cumulative home value, Zillow is optimistic that an average home value recovery can continue into 2013 and have an impact on the high amount of underwater mortgages in the U.S.