Real Estate News

Zillow says Sacramento median home values rise at twice the national rate

A view of the pool and house listed by Anette Black that may be one of the highest priced home ever sold in Sacramento County.
A view of the pool and house listed by Anette Black that may be one of the highest priced home ever sold in Sacramento County. hamezcua@sacbee.com

Sacramento home values are increasing at twice the national rate, according to Seattle-based real estate tracker Zillow.

Zillow said Sacramento’s median home value rose 6.1 percent year-over-year in May to $339,100. Nationally, the median home value rose 3 percent since May 2014 to $179,200.

However, the median value of local homes remains nearly 25 percent below the $442,300 peak reached in December 2005. Zillow forecast a 5.2 percent growth in Sacramento home values over the next year.

Stan Humphries, Zillow’s chief economist, said the rising values represent a gradual return to “a more normal market…from a stimulus-driven housing market to one driven by fundamentals.”

Zillow also said home rental costs continue to rise. In May, the median rent for Sacramento houses was $1,664 a month, up 6.5 percent over May 2014. Nationwide, the monthly rental median in May was $1,367, up 4.3 percent over the year-ago period.

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