To understand this point, envision two functionally sound houses on equal land parcels in the same neighborhood, one valued near the maximum for houses in that neighborhood and another trading at half that price. Any piece of real estate has an average cost per square foot so tracking those costs can provide clear insight to whether real estate in an area is rising or falling, and at what rate. Median housing price estimates at the regional-, county-, city-, and zip code-level come from analysis of individual home sales by Zillow based upon transaction records.
In short, change in supply and demand are going on all the time, however, due to the vast majority of market participants not understanding the effects of that change – or even that change took place in a particular area, the people who do realize that values have changed will be in a position to take advantage.
While there’s insurance coverage specifically for sinkhole damage in case your property is hit by one, they still hurt property values. Agents and Appraisers have access to the Multiple Listing Service, known as the MLS, which is a database of all the properties in a given area that have been listed for sale,” are in process of being sold (pending,) or have already sold.
Over the last 12 months, home values increased 2.1 percent, and during the last five years, home values increased 59.9 percent. Some analysts say the BPOs they don’t take into account a possible plunge in home prices, and the values tend to be more optimistic than a full appraisal.
The indicated coefficient that compares Zillow’s Value to the Assessor’s Value is a95 which indicates that Zillow’s values are highly correlated with the Assessor’s values (Clue #2). The National HPPI shows homeowners’ estimated values were an average of 1.69 percent higher than appraisers’ home value opinions in February.