Washington metro area median home values rose 1.1 percent year-over-year and are now back to May 2004 levels, according to a report released by Zillow on Tuesday.
Zillow, which looked at the value of all homes and not just those sold in a particular time period, also found that median home values increased 1.3 percent from the first to second quarter of this year and went up 0.3 percent month-over-month, representing the third consecutive month of appreciation.
The District of Columbia showed the largest increase in median home values, rising 4.4 percent year-over-year to $371,800. Arlington was up 2.5 percent to $535,300. Alexandria also rose 1.1 percent to $413,300. Silver Spring declined 0.1 percent to $314,200.
Zillow chief economist Stan Humphries said the forecast for the Washington area market is for median home values to increase by two percentage points over the next 12 months.
The second quarter “was a very strong quarter for real estate performance and that led us to believe we are actually seeing fundamental, organic strength in the housing market now,” Humphries said.
Foreclosure re-sales made up 9.1 percent of all sales in June, down from 14.8 percent a year ago and 29 percent in February 2009, when foreclosure sales were at their peak.
“The fact that [the Washington metro area is] down to about 9 percent is very good news,” Humphries said. The region is “well past [its] peak both in terms of time and magnitude.”
Zillow also found that more than a quarter of all homes sold in the Washington metro area in June were sold at a loss (i.e., the price the home sold for was less than the price of its previous sale). The data does not include foreclosure sales.
According to Humphries, the number has remained steady since reaching its currently level around April 2009 and has hovered between 25 percent and 31 percent since that time.
“Anyone who bought [a home in the Washington metro area] during that five-year period [between 2004 and 2009] is likely selling for a loss,” he said.