(Newsroom America) -- U.S. home values rose 1.3 percent in the third quarter of 2012 according to Zillow, marking the fourth consecutive quarter of increases.
The Zillow Home Value Index (ZHVI) also rose on an annual basis, increasing 3.2 percent year-over-year to $153,800, according to Zillow's third quarter Real Estate Market Reports.
Looking ahead, the Zillow Home Value Forecast shows U.S. home values will increase 1.7 percent over the next year, and that 183 of the 253 markets covered by the Forecast have hit a bottom. An additional 41 markets are expected to hit a bottom in the next year.
However, the pace of the recovery is uneven across markets. In the Phoenix metro area, for example, home values rose 5.9 percent quarter-over-quarter, and increased 20.4 percent year-over-year. But in the Atlanta metro, home values fell 2.2 percent quarter-over-quarter and 4.8 percent year-over-year.
Overall, more metro areas experienced home value declines in the third quarter, more than half (52 percent) showing declines in the third quarter, compared with one-third (34 percent) in the second quarter.
Zillow forecasts a saw-toothed bottom to the housing market, in which home values will log small rises and falls before returning to consistent monthly home value appreciation closer to the long-term historical average.
"We're likely seeing home values fall back into the negative range in some markets due to the close of the traditional home-buying season," said Zillow Chief Economist Dr. Stan Humphries.
"While that doesn't mean the recovery has come off the rails – in fact, most markets have hit bottom – it does present a confusing environment for consumers. Looking forward, we expect to see home values bump along the bottom for some time, before increasing at a slow and steady pace."