Metro home value to rise 2 percent over next year

Home values in the Kansas City area are expected to rise 2 percent over the next year as the market continues to strengthen, according to a report released Tuesday.

Data compiled by Zillow Real Estate Research showed that the median home value in the metropolitan area reached $144,200 at the end of the first quarter. That means half the values were above that number, and half were below.

The first quarter number was up 0.1 percent from a year ago, but home values fell 1.2 percent from the fourth quarter last year.

While Zillow said single-family home values have rebounded locally since hitting bottom in 2011’s fourth quarter, the market is expected to grow slower than the national average over the next 12 months. Home values nationally are projected to increase 3.3 percent over the next year, based on Zillow’s survey of more than 300 metropolitan areas.

In the Kansas City area, Zillow said home values remained 7.3 percent below their November 2004 peaks.

But the report also said the “housing recession is almost entirely in the rearview mirror” in seven major metro communities. For example, Zillow said, home values in Overland Park, Olathe, and Shawnee are “already at or expected to reach pre-recession levels” by early 2015.

This story was originally published April 21, 2014 at 11:00 PM with the headline "Metro home value to rise 2 percent over next year."