Zillow Says Now's Time To Buy a Home

Seattle, WA, April 26, 2012 -- Real estate data firm Zillow said home values in the U.S. increased 0.5% from February to March.

Zillow's said it was the largest monthly increase since May 2006, when home values also rose 0.5%.

However, Zillow's index fell 3.1% year-over-year to $146,200.

Nineteen of the 30 metro areas covered by the Zillow Home Value Forecast will reach a bottom in 2012, or have already reached a bottom, the firm said.
Several of those are expected to see significant home value increases in the next 12 months, including the Phoenix (6.5%), Miami-Ft. Lauderdale (5.6%) and Tampa (2.5%) metros, according to the forecast.

"For people who have been waiting to time their home purchase close to market bottom, it's time to start shopping," said Zillow Chief Economist Stan Humphries.

"When the bottom will hit will vary by market, and it's nearly impossible to time a purchase exactly right. But home prices are not the only part of the equation. Buyers also should take into account the possibility that rising mortgage rates could offset any further home value declines that may occur.

"From an economic perspective, the latter part of the first quarter is full of positive news as the spring selling season gets underway. While it is unlikely that national home values continue to rise at this rate through the rest of the spring and summer, it is undeniable that we are seeing sparks of life in the housing market."