Home values increased 6.8% year over year in December, Zillow reported Thursday. The increase for the month represented the fastest annual pace of appreciation recorded in 2016.
Zillow found that its Home Value Index hit $193,800, slightly below the highest value previously set in April 2007.
Rent appreciation occurred at a rate of 1.5% annual growth in December, with the median monthly rent payment coming in at $1,403, Zillow also reported.
Home values rose more steeply in some popular housing markets. In Portland, Ore., home values rose by 13.8% year over year, and nearly 12% annual increases were recorded in Seattle, Dallas and Tampa, Fla.
“Home values ended 2016 growing at their fastest pace of the year, which could be an indication of what to expect in 2017,” said Zillow Chief Economist Svenja Gudell in a news release.
“Especially lack of available entry-level homes coupled with high demand will continue to rapidly drive up home values in the near future. Buyers should make sure they get pre-approved for a mortgage, and be prepared to move quickly, especially in hot markets like Seattle and Portland.”