Home values in New York City rose 8.3 percent year-over-year in 2012, outpacing the 5.9 percent growth in the rest of the United States, but are expected to remain largely flat in 2013, Zillow’s latest real estate market report shows.
National home values grew at a rate that exceeded the normal rate for healthy markets and posted the largest annual gain since August 2006, near the peak of the housing bubble. The fourth quarter of 2012 was the fourth consecutive quarter of home value appreciation, the report shows.
“We expected 2012 to be a good year for housing, and it delivered in spades,” said Zillow Chief Economist Dr. Stan Humphries. “Strong demand paired with limited inventory in many markets helped fuel a robust and often rapid recovery in overall home values, good news for homeowners after years of poor performance.” In New York, Brooklyn and Queens were the best-performing boroughs, with year-over-year home values up 10.7 percent and 7.6 percent. Staten Island–with a 0.2 percent increase and the Bronx–with no change– stayed flat, while Manhattan values fell by 0.9 percent year-over-year.
Humphries said the recovery would continue in 2013, “but at a more sustainable pace,” with national home values expected to rise 3.3 percent. In New York, however, the expectation is that the market will remain flat; Manhattan home values will rise 0.1 percent, Brooklyn 3.1 percent, Queens 2.6 percent, Staten Island 1.1 percent and the Bronx will see a fall of 0.3 percent. —Hiten Samtani