Highlights:
- Weiss Residential Research ranks Denver homes No. 2 for appreciation.
- Only Reno topped Denver, according to Weiss.
- Weiss tracks what it calls “Canary” homes.
Most homes in Denver and Fort Collins are appreciating, according to a new report by Weiss. 8z Real Estate is listing this 2-bedroom, 2-bath condo in Fort Collins for $280,000.
In the Denver metro area 90 percent of the homes gained value in July, ranking it second in the nation for appreciation, according to a national analysis released on Monday.
The Denver-Aurora-Lakewood metropolitan statistical area was second in the nation, topped only by Reno, Nevada, where 91.4 percent of the homes appreciated in July on a year-over-year basis, according to Weiss Residential Research.
In July 2014, 96.9 percent of the homes in the Denver area were appreciating and 97.3 percent in Reno, according to Weiss.
Fort Collins ranked fourth, with 86.5 percent of its homes appreciating in July, down from 96 percent in July 2014.
Nationwide, the report found that depreciating homes increased to 23.4 percent in July, compared with 7.6 percent in July 2014.
Meanwhile, the number of appreciating homes has fallen to 56.8 percent in July from 65.20 percent in July 2014.
Weiss analyzed what it calls “canary” homes. These homes are indicators of price trends
in Weiss Residential Research’s databases of almost 100 million homes.
The Canary Index acts like the proverbial “canary in a coal mine” to give advance notice of changes in home values.
The Canary Index is the percent of the population of nearby houses that are rising.
In a weak market nearly all the houses over a year’s time can be declining in value so the Canary Index can be 15 percent or lower. However, if the number of houses rising increases, i.e. from 15 percent to 20 percent, this is a sign the local market is strengthening
“While a majority of homes nationwide is still gaining value, the national trend is clearly downward,” according to Allan Weiss, founder and principal of his namesake firm,
“With the decline in year over year prices in the existing home sales report released today by the National Association of Realtors, even the national median price reports are picking up on the trend, reflecting the growing of numbers homes that are changing from appreciation to depreciation,” said Weiss, who also was the co-founder and former CEO of the closely followed Case-Shiller index.
“In this environment buyers and investors should be careful to avoid buying properties that are losing value by reviewing metro and Zip code maps on Owners.com that show hyper-local trends in changing value,” Weiss said.
Even seven of the top 10 metro markets with the highest levels of appreciation in July saw a year over year decline in the percentage of homes gaining more than 1.5 percent. Reno, Nevada leads the nation in appreciating properties in July, with more than 91.4 percent gaining value on a monthly basis, though 93.7 percent were appreciating a year ago. Western and West Coast markets dominate the list of markets with the highest percentages of appreciating properties.
Interested in buying a home in Denver? Please visit COhomefinder.com.
Interested in buying a home in Fort Collins? Please visit COhomefinder.com.
Have a story idea or real estate tip? Contact John Rebchook at JRCHOOK@gmail.com. DenverRealEstateWatch.com is sponsored by 8z Real Estate. To read more articles by John Rebchook, subscribe to the Colorado Real Estate Journal.
Related Posts:
The post Weiss: Denver No. 2 for appreciation appeared first on Denver Real Estate Watch.