U.S. home values ended 2012 up 5.9% over the end of 2011, Zillow (Z) reported when covering national home value appreciation.
The nearly 6% annual appreciation rate was well above the typical appreciation in a healthy market and represents the largest annual gain since 2006.
Click on the table below to see Zillow’s full home value index.
Looking into 2013, Zillow predicts home values will increase by 3.3% in 2013, much closer to historic norms.
“We expect this recovery to continue into 2013, but at a more sustainable pace,” said Zillow Chief Economist Dr. Stan Humphries.
“It’s important to be cautious moving forward, even as we celebrate the undeniably positive end to 2012, and be careful that consumers don’t grow to expect such high appreciation as the norm. Buying a home should be a long-term decision, and these swings between a deep housing recession and higher-than-normal appreciation rates can give consumers whiplash and cause some to lose sight of that.”