ZILLOW: Home Prices Climbed At Their Fastest Rate Since August 2006

National home prices were up 5.9 percent year-over-year in 2012, according to Zillow's latest real estate market report.

This was the largest annual gain since August 2006, and home prices were up for four straight quarters.

Meanwhile, the Zillow Home Value Index rose to $157,400 in the fourth quarter.

“We expected 2012 to be a good year for housing, and it delivered in spades. Strong demand paired with limited inventory in many markets helped fuel a robust and often rapid recovery in overall home values, good news for homeowners after years of poor performance,” said Zillow Chief Economist Stan Humphries in a press release.

Of the 30 biggest metros Chicago and Cincinnati were the only two that didn't show quarterly or annual increases.

Home prices are expected to rise 3.3 percent in 2013 but Humphries warned that consumers shouldn't expect such a strong performance this year.

“It’s important to be cautious moving forward, even as we celebrate the undeniably positive end to 2012, and be careful that consumers don't grow to expect such high appreciation as the norm. Buying a home should be a long-term decision, and these swings between a deep housing recession and higher-than-normal appreciation rates can give consumers whiplash and cause some to lose sight of that.”

Note: Zillow issued a correction to their press release to say home prices were up for four straight quarters.

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