Does living along the Market-Frankford subway line, known by riders as the El, contribute to skyrocketing housing values? If you can compare the average price per square foot for the past 12 months, you can determine whether values are rising or falling. The current trend of appraisals falling lower than homeowner estimates started in February 2015, and the gap between the two values has now widened for the third consecutive month.
For example, in the Phoenix metro in January 2011, only 18% of ZIP codes were seeing home value appreciation over the prior three months whereas 87% were seeing appreciation by the end of the year (December 2011). Lorella Martin of Redfin , an online real estate brokerage, was the Harmeses’ listing agent; she set the asking price at $450,000.
Portland has really hit the map for desirable places to live around the country. The graph below displays the average and median sale prices of Portland metro area homes between 2009 and today. While people’s wealth increases when their property values go up, Lavoie pointed out they only see that money when they sell their properties.
In some local markets, especially those that have seen either significant new condo construction downtown or that have little available land suitable for detached housing, the median value of condos exceeds median values of single-family detached homes in the surrounding suburbs.
Sigh… A low inventory of homes for sale should maintain an upward pressure on home prices through 2017. Sellers should be careful and not leave money on the table due to their lack of TODAY’S local market property values. Redfin is predicting median home sale prices to increase nationally 5.3% year over year and the volume of homes sold up just 2.8% in 2017.