Just Listed brings you the latest news and information from the Twin Cities-area commercial and residential real estate market and beyond from veteran reporters Jim Buchta and Janet Moore.

Zillow: Twin Cities home values post biggest bump in six years

Posted by: Jim Buchta under Buying Updated: October 23, 2012 - 11:17 AM

 

When JustListed cites housing stats from Zillow, we often get feedback that's critical of Zillow's methodology, which allows feedback from site users. (That negative feedback, by the way, was more common when prices were falling). For the record, here's Zillow's description of their data:

The Zestimate (pronounced ZEST-ti-met, rhymes with estimate) home valuation is Zillow's estimated market value, computed using a proprietary formula. It is not an appraisal. It is a starting point in determining a home's value. The Zestimate is calculated from public and user submitted data; your real estate agent or appraiser physically inspects the home and takes special features, location, and market conditions into account.  We encourage buyers, sellers, and homeowners to supplement Zillow's information by doing other research such as:

  • Getting a comparative market analysis (CMA) from a real estate agent
  • Getting an appraisal from a professional appraiser
  • Visiting the house (whenever possible)

 Here's the local data: 

·                    Minneapolis Metro Home Value Forecast: The Minneapolis metro hit bottom in Q1 2012. Home values will rise 1.1 percent over the next year (Q3 2012 – Q3 2013). Nationally, home values are projected to increase 1.7 percent over the next year.

 
·        Minneapolis Metro Home Values: The median home value rose 3.1 percent year-over-year to a Zillow Home Value Index (ZHVI) of $170,700. This is the largest annual gain since April 2006, when home values rose 3.3 percent year-over-year. Values also rose in the short-term, rising 0.8 percent from Q2 to Q3. The ZHVI measures the value of all homes, not just those that sold in a particular period.
 
o   Minneapolis metro home values have fallen 28.9 percent from their peak in April 2006 and are now back to September 2001 levels.
 
o   Major city breakout:
§ Bloomington:    ZHVI: $183,300, up 6.4 percent year-over-year
§ Saint Paul:          ZHVI: $128,500, down 0.9 percent year-over-year
§ Minneapolis:     ZHVI: $159,100, up 2.6 percent year-over-year
 
·         Minneapolis metro rents: The median rents in the Minneapolis metro rose 7.2 percent annually to a Zillow Rent Index (ZRI) of $1,456. In the short-term, rents rose 0.8% from Q2 to Q3 2012.
 
·         Foreclosure re-sales: 12.8% of all sales in September were foreclosure re-sales (REO sales), down 5.3% from September 2011. Nationally, foreclosure re-sales made up 13.4% of all sales.
 

 

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