2Q Home Values Up 9.5%

Home values in major metropolitan areas rose in the second quarter to a level 9.5% higher than it was a year earlier, reaching their highest level of the decade, according to First American Real Estate Solutions.First American RES, a nationwide real estate information company based in Anaheim, Calif., said it found "steep home value appreciation rates in the major metropolitan areas of California and New York" and moderate increases elsewhere. Orange County, Calif., experienced the largest increase in home values -- 17.9% -- among the 36 metropolitan areas analyzed. "In fact, California's major urban centers have emerged as among the nation's hottest housing markets," the company said. "However, the state's housing recovery is patchy, and home values in some areas have not elevated to a point to compensate homeowners that have incurred equity losses since the early 1990s. In Los Angeles County, home values are still 20% below their level in 1990." After Orange County, the areas with the biggest home value increases were: Oakland, San Diego, San Francisco, and San Jose, all in California; New York; Seattle-Bellevue-Everett; Los Angeles-Long Beach; Boston; and Denver. The figures are based on a repeat-sales model that tracks the resale value of homes that have sold at least twice, the company said.