Tuesday, January 17, 2012

Zillow: Metro home prices in Colorado fall, except in Ft. Collins area

More than half of local markets appreciated or remained flat month-over-month in November according to Zillow Real Estate Market Reports

Home values in the United States were essentially unchanged in November, decreasing a marginal 0.1 percent from October, according to this month's Zillow Real Estate Market Reports. Annually, the Zillow Home Value Index fell 4.6 percent from November 2010 to $147,800 and has returned to late 2003 levels.

Regionally, home values appreciated or remained flat from October to November in 60 percent of the 165 housing markets covered by Zillow, compared to 24 percent last year. Major metropolitan statistical areas (MSAs) that experienced flat or increasing home values include Los Angeles, Washington, Miami-Ft. Lauderdale, Fla., San Francisco and Detroit. On an annual basis, the median home value is down for nearly all (90 percent) of the 165 MSAs covered by Zillow, although the rate of annualized depreciation has slowed significantly in the majority of the markets.

In Colorado's metro areas, all areas except the Fort Collins metro area showed year-over-declines from November 2010 to November 2011. Grand Junction and Pueblo showed the largest drops while Boulder, Denver metro showed the smallest drops.

Greeley data was not included in the report.

Change from Nov 2010 to Nov 2011:
Boulder -0.1
Colo Springs -3.1
Denver metro -2.5
Ft. Collins +2.3
Grand Junct -8.9
Pueblo - 5.6

As can be seen in the graph, in recent years, home prices have shown the most stability in Boulder, Fort Collins and in Denver metro. These three areas also have the highest median estimated value, according to Zillow.

The Grand Junction area has showed the most bubble-like behavior in its run-up in prices in 2007 and 2008 before a significant decline over the past 2 years.

Zillow home valuations, known as the median "Zestimate valuation" should be taken with a grain of salt, but in this case they do appear to be in line with other home price indices and trends. The metro trends presented here match up well with the metro trends provided by FHFA's quarterly reports on home prices in Colorado.