In July, year-over-year home prices increased by 6%, which also represents the 14th straight month of annual appreciation.
Of the 393 metropolitans covered by Zillow in this report, 303 (77.1%) showed a yearly uptick in home values. Those cities with the biggest gains from July 2012 include Sacramento, Las Vegas, San Francisco and Riverside, Calif., all up by 33.1%, 30.8%, 27.8% and 27.3%, respectively.
On the East Coast, home price appreciation was not as substantial, with Orlando up 15.1%, Boston experienced an 8.4% rise, an uptick of 8.2% occurred in Washington DC, and New Yorks increase was only 2.2%.
Meanwhile, on a monthly basis, housing units throughout the nation were up 0.4% from June to a Zillow Home Value Index of $161,600.
The Seattle-based real estate information provider said monthly home values have gone up in 20 of the past 21 months going back to November 2011 after the U.S. market bottomed in October of that year. Overall, Zillow said 73.5% or 289 markets, registered month-over-month appreciation.
Zillow is forecasting that home values will continue to rise over the next 12-months by another 4.8% to about $169,308.
Furthermore, national rents also increased in July compared to June, up 0.5% to a Zillow Rent Index of $1,287. On an annual basis, rents across the country rose by 1.7% during the month of July.
After three straight months of annual home value appreciation above 5%, the U.S. housing market recovery has proven it is on very sound footing, said Stan Humphries, chief economist for Zillow. We have entered a new phase in the recovery when we can begin to turn away from ugly recent history and turn toward what the housing market of the future will look like and how it will act.