National Zillow Quarterly Trend Reports Released

By
Real Estate Services with Zillow

I often get asked how investors can use Zillow.  With a database of over 70 million homes, one of the best ways to use the site is to evaluate trends.  Each quarter Zillow organizes this data and releases it at a link that can be found at the very bottom on the Zillow home page.  Below I will highlight some of the national trends for the July-September 2007 data that was just released, but you can follow the link to find data for your specific area

  • National home values declined 5.7% year-over-over.  5 year United States Zindex Chart
  • This is the 4th consecutive quarter decline and the largest decline in more than 10 years.
  • The US Zindex is $244,000, down 2.8% from the previous quarter.  This is the median of all Zestimates

For the first time since releasing these reports, we analyzed these numbers compared with mortgage information on record for the home.  While we all know that real estate cycles up and down, these numbers were a little more scary to me.  However, the numbers illustrate why is it always ideal to have a long term strategy when doing any this of investing. 

  • 15.6% of those who bought within the last year have negative equity.
  • 17.5% of those who bought within the last 2 years have negative equity.
  • 1.8% of those who bought within the last 5 years have negative equity.

Despite these situations where homeowners could be upside down, there is still a strong case to buy real estate as most homeowners still have positive equity in their homes.  In fact, many that have purchased in the last two years have seen some sort of equity increase.  This increase or decrease in equity depended on factors such as when the home was purchased, down payment amount and net market appreciation. 

  • Homeowners who bought within the last 2 years made a median down payment of 10% and own 13% equity share in their home.
  • Homeowners who bought within the last 5 years made a median down payment of 11% and own a 41% equity share in their home, stemming from a annualized rate of 9.4% each year. 

Basically these numbers prove what you as real estate professionals already know.  You should encourage your clients to make smart real estate investments that are within their financial capabilities and goals.  And if you are going to get into the real estate game, the best strategy is a long term one. 

For detailed numbers in your area, click HERE

 

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Rainmaker
110,454
Lewis Poretz
- Mortgage Branch Opportunities - Nationwide
AnnieMac Home Mortgage

Sara -   I always had a problem with the value zillow came up with until recently. Seems like it was always lagging behind the real value of properties but here in the Baltimore / DC area it seems to be a bit more accurate recently.  Thanks for the post....

 


November 25, 2007 07:33 PM
Rainmaker
181,513
Sara Bonert
Real Estate Internet Marketing
Zillow
Jecissa-  that is GREAT.  next step- get you a deal because of zillow!
November 26, 2007 07:39 AM
Rainmaker
271,087
Ken Cook
Writer For Hire
Digital Content Creator
Sara - Thank you for using the word NATIONAL. Your associate who has created a profile here omitted that word and simply alluded to "Housing Values Decreased 5.7%" (paraphrased). I personally have an issue with the globalization of the real estate market unless it is reported as global. I would also like to see the words "average" - even just using the term "national" makes it sound as though every home in America went down in value 5.7% - Welcome to Active Rain. You'll find me one of the more vocal bloggers here both uplifting and challenging.
November 26, 2007 08:35 AM
Rainmaker
181,513
Sara Bonert
Real Estate Internet Marketing
Zillow
Ken-  Thanks for the comment and good point about using the word National.  Did you happen to check out the link to where all of the information resides on the site?  We break everything down to a very local level there. 
November 26, 2007 01:47 PM
Rainmaker
325,145
Esko Kiuru

Sara,

As the numbers prove, real estate has held its own in the long term. Those who wish to make short-term profits in the industry have to be really quick and decisive and also lucky. In most part of the country now is a good time to buy.

November 26, 2007 04:40 PM
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Rainmaker
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Sara Bonert

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