Home prices in the Sacramento area will rise significantly in the coming year, outpacing the national average, online real estate tracker Zillow predicted today.
The Seattle-based firm projected that home prices in the four-county region will increase by an average of 5.6 percent through the third quarter of 2013, while home prices nationally will rise by 1.7 percent.
Like other market watchers, Zilllow said area home prices hit bottom in the first few months of this year after a five-year free fall.
Tight inventory, low interest rates and fewer foreclosed homes on the market have been pushing prices up in recent months.
The median home value in the region rose 3.4 percent, to $210,900, in the third quarter of 2012 compared with the third quarter of 2011, Zillow said.
Prices were up 2.9 percent from the second to the third quarter of this year, it said.
Some cities did better than others. Elk Grove's median home price rose 6.4 percent in the third quarter of 2012 compared to the same period a year before, Zillow reported. Roseville's jumped by 6.2 percent year-over-year, it said.
In the city of Sacramento, the median home price rose by 3.7 percent from the third quarter of 2011 to the third quarter of 2012, Zillow said.
Sacramento area home values are now back to March 2002 levels, the company reported.
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