More than One Quarter of US Homes Lost Value in August; Percentage of Appreciating Homes Rose Slightly, but Still Trails Last Year by 11.5 Percent
NATICK, Mass., Oct. 21, 2015 /PRNewswire-USNewswire/ -- More than one in every four US homes lost value in August as the national percentage of depreciating homes rose from 23.40 percent in July to 27 percent in August. The national depreciation rate was 13.6 percent in August 2014. The percent of homes gaining value increased slightly to 59.2 percent in August from 56.8 percent in July, but was still 11.5 percent lower than the appreciation rate in August 2014, Allan Weiss, CEO of Weiss Residential Research reported today.
From a sample of 44,461,479 homes, some 29,754,582 homes appreciated and 11,996,932 depreciated during the month by 1.5 percent or more.
"National median reports are showing that year over year prices moderating in August, a sign that the depreciation trends we have monitored at the hyper-local level since May are intensifying. Year over year appreciation rates are falling virtually everywhere, even in eight of the nation's hottest markets," said Allan Weiss, co-founder and former CEO of Case Shiller Weiss and CEO of Weiss Residential Research.
"In this environment buyers and investors should be careful to avoid buying properties that are losing value by reviewing metro and Zip code maps that show hyper-local price trends," Weiss said.
August 2015 Appreciation and Depreciation Rates
| Count |
Total |
Percentage |
|
| August '14 Appreciating |
29,754,582 |
44,461,479 |
66.9% |
| August '15 Appreciating |
26,317,665 |
44,461,479 |
59.2% |
| August '14 Depreciating |
6,065,630 |
44,461,479 |
13.6% |
| August '15 Depreciating |
11,996,932 |
44,461,479 |
27.0% |
Source: Weiss Residential Research
Top Ten Markets by August Appreciation Percentage, Largest 150 Markets
The decline in appreciating homes is occurring in the nation's hottest markets as well as those that are not faring as well during the current season. Only the top two best performing metros by percent of houses rising, Flint MI and Fayetteville AR, had more homes gaining value in August than they did a year ago. The next eight, including markets like Denver, San Francisco and San Jose have appreciation rates that are lower than they were a year ago.
| Metro |
Aug-14 |
Aug-15 |
Change |
| Flint, MI |
52% |
100% |
48% |
| Fayetteville-Springdale-Rogers, AR-MO |
48% |
94% |
45% |
| Reno, NV |
100% |
92% |
-8% |
| Denver-Aurora-Lakewood, CO |
97% |
90% |
-6% |
| Fort Collins, CO |
90% |
88% |
-2% |
| Portland-Vancouver-Hillsboro, OR-WA |
94% |
87% |
-7% |
| Madison, WI |
72% |
82% |
10% |
| San Jose-Sunnyvale-Santa Clara, CA |
96% |
82% |
-15% |
| San Francisco-Oakland-Hayward, CA |
96% |
79% |
-17% |
| Seattle-Tacoma-Bellevue, WA |
88% |
79% |
-10% |
Source: Weiss Residential Research
Bottom Ten Markets by August Appreciation Percentage, Largest 150 Markets
All of the top ten appreciating markets are located in the West or Midwest, but the bottom ten markets by appreciation rates are entirely in the Northeast, MidAtlantic and South. With the exception of Allentown PA, the bottom markets have appreciation rates of 40 percent or lower last year yet four of nine have appreciation rates even lower than they were last year.
| Metro |
Aug-14 |
Aug-15 |
Change |
| Hickory-Lenoir-Morganton, NC |
35% |
19% |
-15% |
| Little Rock-North Little Rock-Conway, AR |
37% |
31% |
-6% |
| Baltimore-Columbia-Towson, MD |
37% |
32% |
-6% |
| Albany-Schenectady-Troy, NY |
32% |
32% |
0% |
| Trenton, NJ |
40% |
33% |
-7% |
| Harrisburg-Carlisle, PA |
34% |
36% |
2% |
| Youngstown-Warren-Boardman, OH-PA |
31% |
38% |
6% |
| Hartford-West Hartford-East Hartford, CT |
32% |
39% |
8% |
| Greensboro-High Point, NC |
36% |
41% |
5% |
| Allentown-Bethlehem-Easton, PA-NJ |
51% |
41% |
-10% |
Source: Weiss Residential Research
The most current data from Weiss Residential Research is incorporated in Owners.com's Trend Tracking Tool™, where consumers can uncover the pricing trends that are shaping the future of their neighborhoods. Consumers can also see recent value changes and one year forecasts for 5500 Zip codes and 100 metros at http://www.weissindex.com/.
About Weiss Residential Research
Weiss Residential Research LLC was founded to help fill the knowledge and innovation gap that led to the great housing crash of 2007 as well as to help mitigate the financial risk of home ownership going forward. WRR is a pioneer in next generation home price analytics. Building on Weiss' unique expertise in repeat sales home price indexes, he has increased the resolution of market analysis by nearly 10,000-fold. WRR has created nearly 50 million repeat sales indexes, one for each house, through the use of Big Data techniques, novel algorithms and by harnessing the power of massively parallel multi-CPU computing power.
Weiss' approach presents home price dynamics at the house level or any user-defined aggregation. Instead of being forced to use arbitrary market definitions such as 'metro area', users can define their own markets such as 'all houses with a current value above $500,000 within a 50 mile radius of the Statue of Liberty.' In some cases markets organically define themselves as can be seen by the clustering in our market maps and dynamic maps. New trends can therefore be discovered, new sub markets defined, compared and ranked.
Find out more about Weiss Residential Research: https://www.weissindex.com
SOURCE Weiss Residential Research
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