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Home Search Zillow Sued for Inaccurate Zestimate’s

Home Search Zillow Sued for Inaccurate Zestimate’s

This past May, Zillow, the online real estate search company was sued by a Chicago based home building company who claimed that Zillow’s online Automated Value Model (AVM) is deceiving home buyers with prices below the true value of properties leading to frustrated sellers. Furthermore the suit claims that Zillow’s “Zestimates” are in violation of the legal description of an appraisal, which under Illinois law must be administered by a licensed appraiser. Zillow defends themselves by stating that their Zestimates claim only to be approximations not true appraisals; to which the suit responds stating that whether or not they are technically appraisals homeowners are viewing them as such leading to confusion and irritation. It will be interesting to see over the coming months how this lawsuit plays out. It’s clear that Zillow’s Zestimate and other AVM’s which are becoming common across the internet are being used by consumers to determine the approximate value of their home.  But in my experience, many times this approximation isn’t close to the true market value. So just how accurate are Zestimates. In a Nationwide study conducted by Zillow it was found that their Zestimates fall within 5% of the sales price of homes 53.9% of the time, within 10% of the sales price 75.6% of the time and finally within 20% of the sales price 89.7% of the time. Back in 2007 when Zillow was just getting its footing I conducted my own research local to Boulder on the subject and found that on a whole Zillow’s algorithm was 99% accurate.  However, when I took a closer look I found that there was...
Tracking Boulder’s Home Appreciation Over Time

Tracking Boulder’s Home Appreciation Over Time

Boulder County Has One of the Most Consistently Strong Real Estate Markets In The Nation According to the most recent FHFA.gov Home Price Index quarterly report the one year appreciation in Boulder County for the period ending March 31, 2017 was 11.23%.  This ranks us 12th highest in the nation out of the 257 largest Metropolitan Statistical Districts that were studied.  Our area has been ranked in the top 15 for eight straight quarters including a #1 ranking for the period ending June 30th 2016.  The first chart below shows the annual appreciation reported on a quarterly basis for both Boulder County (green) and the United States average (blue).  The last five years have been one of our strongest “bull runs” in our history.  Over the past five years, the average home has appreciated 55%. The chart below shows our national ranking compared to the 257 other markets in the FHFA report since 2nd quarter of 2006.  This is an interesting graph because it shows that just before the economic downturn in 2008 our market was actually in the last quartile.  Our annualized returns at that time were in the 1 to 3% range.  As the downturn started and the real estate market came to a grinding halt our ranking improved compared to the rest of the country.  During 2008 our appreciation remained above +2%.  From 2009 – 2011 our average annual appreciation ranged from +2% to -2.8%. It turns out that we were one of the most stable markets in the country. This got me to thinking about how we compare to other currently “hot” markets over the...
The Latest Kearney Report – Q1 2017

The Latest Kearney Report – Q1 2017

I have just published The Kearney Report for the 1st Quarter of 2017.  The entire report can be viewed below on this page or you can download the PDF link here The Kearney Report 1st Quarter 2017 Real Estate Market Update The Boulder area real estate market has been one of the most robust markets in the nation over the past few years.  The market has been characterized by steady sales, low inventory and rapidly rising prices.  This trend continued through the first quarter of 2017. During the first quarter of 2017 there were 847 sales in Boulder County which reflects a 5% drop from the previous year. The median sales price during the quarter was $465,000 which is 9% higher than it was a year ago.  Inventory, especially towards the end of the quarter and then extending into April and May has increased giving buyers more breathing room to shop for homes.  During the first quarter, 35% of the sales had a price above the list price, 20% were at the asking price and 45% were below.  Of those that did sell above list price the average premium paid was 4.4%. During the first quarter of 2016, 42% sold above list price and the average premium paid was 5.5%.  It seems that calling this a slow down is splitting hairs but during that same period it was my experience that showings were down and the number of offers received on any one property was down as well. Through the end of April the total number of residential sales in Boulder County is up roughly 1% with January and March exceeding...
830 20th Street #204 – $275,000 – SOLD!

830 20th Street #204 – $275,000 – SOLD!

Right Across from Campus – Great new listing for CU Students or Investors Cute condo located just steps from the University of Colorado. This neat and clean 1 bedroom condo shows great and includes a reserved parking spot (#23), a storage locker and use of the HOA pool. The location is so convenient you won’t be using your car much. Laundry room in the basement. Great for owner occupant or investor. Well priced and has low HOA fee. Heat included in the HOA, super low utility costs.      ...