Archive for 'Zillow'

Rising Home Prices Keep First Time Buyers in Limbo

With the Real Estate market heating up the last couple of years, first time home buyers are in a bit of a quandary. That 20% down payment that they were trying to save for their first home now seems to be a little harder to reach. The problem is that home prices are moving up in certain parts of the country which forces the new buyer to save more and for a longer period of time to achieve that 20% down payment . Of course, there are other options too, like VA or FHA financing which require less in the way of a down payment.

For future home buyers wondering when to stop saving and get into the housing market, the math is clear: the sooner the better. With home values forcasted to rise in every major U.S. metro over the next year, a 20 percent down payment on the median-priced home today will cost thousands of dollars more just one year from now.

Nationally, the median home will be worth $6,275 more a year from now, according to Zillow®‘s home value forecasts. That means the average U.S. buyer will need to save an additional $105 a month – $1,260 total over the next year – just to account for how much more a 20 percent down payment will cost a year from now.  

In hot coastal markets like San Jose, home values are expected to rise as much as $35,934 by this time next year, the highest annual dollar increase of the metros analyzed. A buyer in 2018 will then need $7,188 more for a down payment on the median home than they would today. For those saving on a monthly basis for a future home purchase, that equates to putting away an additional $599 a month just to keep up with home value appreciation, let alone whatever else is needed for the down payment itself. Future home buyers in Seattle, San Diego and Riverside, Calif. can also expect to spend thousands of dollars more on down payments for the median home a year from now.

Saving for a down payment is one of the biggest hurdles to homeownershipi. That may be why more than half (59 percent) of all first-time buyers today put less than 20 percent down on their home purchase, according to Zillow Group’s Consumer Housing Trends Report 2017. However, a small down payment does not come without risks. The report also found that buyers with larger down payments are more likely to get their offer accepted, averaging just 1.9 total offers before winning their house compared to 2.4 for buyers with lower down payments. When time is money, a low down payment can be costly.

“Sky-high rents and rising home prices are putting first-time buyers in a bit of a catch-22,” says Dr. Svenja Gudell, Zillow chief economist. “Buying now with a low down payment can be riskier, and the offer may not be considered as competitive by the seller. However, a renter who saves for another year to reach a larger down payment may find that the home they love today is outside their budget a year from now. For those considering buying in the next year, getting into the market today may make more financial sense than they think.”

Buyers can use the Zillow affordability calculator to see how much they can actually afford to spend on a home, based on their income, debt and savings. The Zillow mortgage calculator can also provide custom down payment estimates based on home price and interest rates.

Zillow is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow Group’s Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Launched in 2006, Zillow is owned and operated by Zillow Group, Inc. (NASDAQ:Z and ZG), and headquartered in Seattle.

Zillow is a registered trademark of Zillow, Inc.

i According to the first Zillow Housing Aspirations Report (ZHAR), a semi-annual survey of 10,000 Americans seeking insight into their views on homeownership and their housing plans.

RELATED LINKS

http://www.zillow.com

Zillow Reveals Top Sellers and Buyers Markets

Zillow

Zillow (Photo credit: damienvanachter)

Potential home sellers in many Western metro areas, including the Bay Area, Las Vegas and Phoenix, are well-positioned to take advantage of locally strong demand and are likely to have the upper hand in negotiations when selling their homes, according to the latest Zillow® ranking of national buyers’ and sellers’ markets.

For those looking to buy a home, Midwestern and Mid-Atlantic metros including Chicago, Cleveland and Philadelphia offer the most favorable conditions, with price discounts exceeding 5 percent in some areas and listings remaining active in some cases for 100 days or more.

Zillow analyzed data on actual sales prices compared to asking prices, the number of days listings spent on Zillow and the percentage of homes on the market with a price cut, and ranked the 30 largest metro areas in the country to determine whether buyers or sellers have more negotiating power in a given market. In this analysis, a sellers’ market is not necessarily one where home values are rising, but rather one in which homes are on the market for a shorter time, price cuts occur less frequently and homes are sold at prices very close to (or greater than) their last listing price. In buyers’ markets, homes for sale stay on the market longer, price cuts occur more frequently and homes are sold for less relative to their listing price, giving buyers more negotiating power.

“As most housing markets continue to improve nationwide, the relative position of buyers and sellers continues to vary considerably by geography,” said Zillow Chief Economist Stan Humphries. “In some markets, buyers are finding themselves in strong bargaining positions relative to sellers, confidently offering less than the asking price on a home they had months to consider. In other areas, it’s sellers that are squarely in the driver’s seat with their homes selling within days of listing, often after bidding wars that increase the sale price above the asking price.”

“Many of the strongest sellers’ markets are in areas that were hardest hit by the housing bust, places like California, Nevada and Arizona, which may seem counter-intuitive. But much of that strength is driven by investor interest, as many distressed and non-distressed homes are purchased and transformed into rentals. This investor activity is contributing to very low inventory levels, which increases demand and helps drive up prices, particularly for less expensive homes in these markets.”

Top 10 Sellers’ Markets Top  10 Buyers’ Markets
1. San Jose, Calif. 1. Chicago, Ill.
2. San Francisco, Calif. 2. Cleveland, Ohio
3. Sacramento, Calif. 3. Philadelphia, Pa.
4. Las Vegas, Nev. 4. Cincinnati, Ohio
5. Phoenix, Ariz. 5. New York, N.Y.
6. Riverside, Calif. 6. Pittsburgh, Pa.
7. Los Angeles, Calif. 7. Baltimore, Md.
8. San Diego, Calif. 8. St. Louis, Mo.
9. Seattle, Wash. 9. Columbus, Ohio
10. Washington, DC 10. Charlotte, N.C.

For a full ranking of metro areas, of the cities within a particular metro or for the data that went into the buyer/seller rankings, please see the full research brief or contact press@zillow.com.

About Zillow:
Zillow (NASDAQ: Z) is the leading real estate information marketplace, providing vital information about homes, real estate listings and mortgages through its website and mobile applications, enabling homeowners, buyers, sellers and renters to connect with real estate and mortgage professionals best suited to meet their needs. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow’s Chief Economist Dr. Stan Humphries. Dr. Humphries and his team of economists and data analysts produce extensive housing data and research covering more than 350 markets at Zillow Real Estate Research. Zillow, Inc. operates Zillow.com®, Zillow Mortgage Marketplace,  Zillow Rentals, Zillow Mobile, Postlets®, Diverse Solutions®, Buyfolio™ and Mortech™. The company is headquartered in Seattle.

Zillow.com, Zillow, Postlets and Diverse solutions are registered trademarks of Zillow, Inc. Buyfolio and Mortech are trademarks of Zillow, Inc.

CONTACT: Cory Hopkins, Zillow, +1-206-757-2701 or press@zillow.com

Web Site: http://www.zillow.com

Foreclosure Numbers Lowest in the Better School Districts

Maybe you’ve been thinking about buying a house in foreclosure and even though you have some money saved you still need to find a really good deal. If you’re at the point that you’re actually looking at these houses, you start to notice that most of these properties are in marginal neighborhoods. Now, that may be OK for the investors but you have kids and plan on living in the house and don’t want to send your kids to those school districts. A new study just released addresses this situation.

Highly ranked school districts may have been spared the worst of the foreclosure crisis, according to a new analysis, showing that the housing crash was akin to a tornado that tore through wide swaths, but hit with particular force in certain areas.

The analysis, conducted for Developments by Location Inc., a Worcester, Mass.-based company that mines local data for businesses and consumers, looked at six months of 2011 sales data collected by RealtyTrac Inc. It showed that the percentage of foreclosure (or “real-estate-owned”) sales went down as the school ranking went up in five metro areas – Jacksonville, Fla; Atlanta; Toledo, Ohio; Stockton, Calif.; and Seattle. Higher-rated school districts also maintained higher home-sale prices, and higher home prices per square foot.

“If you are looking to buy into one of these good school districts, it is very rare to find a foreclosure,” said Location Inc.’s chief executive Andrew Schiller, an expert in demographic analysis who conducted the research with his colleague Jonathan Glick. “It’s better to just go into a normal sale.” (The five cities were chosen to provide a general market overview.)

The finding is, to a certain extent, not a surprise. Schools have long been a driver for home buyers, whether in determining location or timing. So it would make sense that school ranking could serve as a kind of proxy for measuring the damage from the foreclosure crisis.

It’s also not that foreclosure sales don’t exist in highly ranked districts; they are just much less of a factor, and the reason could be income. Stan Humphries, chief economist for real-estate data company Zillow, said that it’s “likely both educational outcomes and foreclosures are ultimately linked to income, not to each other.”

The upper tier of homeowners saw less of an impact from the housing crash than the bottom tier, according to Mr. Humphries; the top third of homes dropped 26% from the recent high point; the bottom third of homes in value fell 37%. Some sought-after neighborhoods probably saw less severe price erosion, which in turn helped sustain property taxes and protect a vital funding source for schools.

Mr. Schiller said he sees school quality as both a result and a driver of income concentrations in parts of metropolitan areas. “Once in place, the higher-quality school systems reinforce this, causing higher demand for properties there, and higher values.”

Good schools may also be one of few factors keeping buyers in certain markets today, further bolstering prices and property-tax bases in sought-after districts like Newton, Mass. and Cupertino, Calif., said Glenn Kelman, chief executive of the online brokerage Redfin. “People always want to live in those school districts,” Mr. Kelman said. “And those school districts have remained well-financed even as neighboring districts have to cut costs.”

Source

So, while it’s true that even million dollar houses sometimes go through foreclosure, it doesn’t happen that often. But when it does, the competition level goes way up and you won’t be buying that house for a mere pittance. Unless you have a lot of time and money, you’re better off with a traditional sale.

Google Enters the Mortgage Loan Business

Google Enters the Mortgage Loan Business

Google Enters the Mortgage Loan Business-Image by James Marvin Phelps via Flickr

LoanSifter, Inc. (www.LoanSifter.com), provider of the mortgage industry’s most complete and intuitive product and real-time pricing platform, announced today a strategic relationship with Google Inc. that gives consumers access to mortgage loan products and real-time pricing based on LoanSifter’s technology, including side-by-side comparisons of mortgage loan products from multiple lenders through Google’s Comparison Ads.

Google’s Comparison Ads help consumers shop for mortgages online by retrieving quotes based on the borrower’s specific loan criteria.  Through a strategic relationship between both companies, Google will leverage LoanSifter’s industry-leading technology – which automates pricing for lenders using the largest real-time database of investor pricing and eligibility content available in the mortgage industry — to provide Google users with information on mortgage products and pricing from the lenders using LoanSifter.  When Google users get these rates, LoanSifter’s lenders will receive qualified online leads.

Greg Ulrich, production manager at Fairway Independent Mortgage Corporation in Colleyville, Texas, believes that Google’s popularity provides a great opportunity as another channel for borrowers to reach the company, without substantial investment costs.  “This saves us money, allowing us to pass a greater savings to the consumer,” Ulrich said.

“We chose LoanSifter for our Google auto-quoting because it enables us to customize our pricing more accurately and effectively,” Ulrich added.  “Other vendors require manual supervision, which would have been problematic in keeping up with market shifts.”

Consumers who search for popular mortgage-related terms or phrases on Google are drawn to Google’s proprietary mortgage Comparison Ads, where they can anonymously provide details such as their desired loan amounts and credit scores.  Google will then retrieve multiple reliable offers from dependable lenders, placed side-by-side so the borrower can compare them.  After investigating different scenarios and choosing a lender, the borrower is then able to contact the lender by phone or e-mail.  Borrowers do not have to fill out lengthy forms or click through walls of advertisements in order to access up-to-the-minute loan products and rates, and the leads generated to lenders are anonymous, so that borrowers can protect their private information until they are ready to move forward in the mortgage process.

“Our relationship with Google will be of tremendous benefit to both lenders and consumers,” LoanSifter President Bruce Backer said.  “A growing number of borrowers are using the Internet to find the best possible mortgage deals, and Google’s immense popularity makes it a first stop for many.  Borrowers benefit from the side-by-side comparison in an open marketplace, while lenders benefit from LoanSifter’s ability to accurately price mortgage scenarios on their behalf.”

About LoanSifter

LoanSifter, Inc. provides the banking industry’s most comprehensive tools for mortgage bankers, loan officers and secondary departments to price, market and manage loans. The company’s flagship technology solution is an accurate, web-based product and pricing solution providing bankers with advanced tools to improve their service levels and increase profits. LoanSifter boasts the most comprehensive investor database in the industry with over 160 correspondent and wholesale investors. LoanSifter is also the leader in delivering point-of-sale (POS) and marketing tools to lenders and loan officers, including its eOriginations suite solution, offering highly customizable website utilities (automated consumer-facing pricing search), automated email campaigns, automated quoting for Zillow and LendingTree, scenario-specific rate monitoring alerts, and automated marketing materials. Founded in 2004, LoanSifter is headquartered in Appleton, Wisconsin.  For more information about LoanSifter, call 920.268.4770 or visit www.LoanSifter.com.

PRESS CONTACT:  
Warren Lutz
Strategic Vantage Marketing & Public Relations
(925) 270-3941
PR@StrategicVantage.com

Web Site: http://www.loansifter.com

Home Buyers Still in the Dark About Buying Process

Home Buyers Still in the Dark About Buying Process-Image by Getty Images via @daylife

Despite widespread volatility within the housing market and five consecutive years of home value declines, more than two in five (42 percent) of polled prospective home buyers believe home values typically appreciate by 7 percent a year, according to a recent survey by leading real estate information marketplace Zillow (NASDAQ: Z).

This is an unrealistic expectation as, historically, home values in a normal market tend to appreciate by 2-5 percent a year. (1)

Zillow, with Ipsos®, surveyed prospective home buyers (2), asking basic questions about the home buying process.

Despite the unrealistic expectations about home value appreciation, prospective home buyer respondents seem fairly knowledgeable about the home buying process, answering questions correctly more than half the time (65 percent). However, several important parts of the process confused them.  Two in five (41 percent) buyers think they are required to buy private mortgage insurance (PMI) regardless of the amount of their down payment.  In fact, lenders typically require PMI only when buyers are putting down less than 20 percent of the home’s purchase price.

Additionally, more than half of prospective home buyers who were polled confuse appraisals and inspections.  Fifty-six percent said the purpose of an appraisal was to determine if the home is in good condition, when in fact that is the purpose of an inspection.

“It’s troubling that we’re still in the midst of one of the worst housing recessions in history, and yet prospective buyers continue to have such high expectations for home value appreciation,” said Dr. Stan Humphries, chief economist at Zillow. “It’s great that buyers seem to have a fairly solid grasp of the home-buying process, but since this is one of the biggest financial decisions of most people’s lives, it’s even more important that they understand how that investment will appreciate after they sign the papers. Over-estimation of the appreciation potential will lead many to buy real estate when the time in which they plan to live in the house may make renting a better strategy.”

Additional Survey Findings

  • More than one-third (37 percent) of prospective home buyer respondents believe buying homeowner’s insurance is optional.  In reality, lenders require that borrowers purchase homeowner’s insurance. This insurance protects the lender. If catastrophe strikes, the mortgage will be repaid from the insurance proceeds.
  • Nearly half of polled prospective home buyers in the study do not understand when they will actually own the home they intend to buy. Forty-seven percent said a prospective buyer owns a home after the purchase contract is signed.  The purchase and sales agreement merely kicks off the closing phase, which can be a lengthy process.
  • The majority (87 percent) of polled prospective home buyers know that closing costs are negotiable and can vary by bank and lender. Lender fees, like loan-origination fees, administrative costs and other clerical fees, are typically the most negotiable in the home buying process.

 

Interactive Online Quiz and Resources Available

An online version of the Zillow survey, the “Buyer IQ Quiz,” is available at http://www.zillow.com/mortgage-rates/buyer-iq-quiz/ and contains the correct answers. Following the quiz, participants are given a score and resources to learn more about the home-buying process.

About Zillow, Inc.

Zillow (NASDAQ: Z) is the leading real estate information marketplace, providing vital information about homes, real estate listings and mortgages through its website and mobile applications, enabling homeowners, buyers, sellers and renters to connect with real estate and mortgage professionals best suited to meet their needs. More than 24 million unique users visited Zillow’s websites and mobile applications in September 2011. Zillow, Inc. operates Zillow.com®, Zillow Mortgage Marketplace, Zillow Mobile and Postlets®. The company is headquartered in Seattle.

Zillow, Zillow.com and Postlets are registered trademarks of Zillow, Inc.

Ipsos is a registered trademark of Ipsos S.A.

(1)Over the period from 1890 to 2006, the average annual growth in home values was 3.7%.  Source: Irrational Exuberance by Robert Shiller (Princeton University Press 2000, Broadway Books 2001, 2nd edition, 2005)

(2) These are some of the findings of an Ipsos poll conducted August 31-September 1, 2011.  For the survey, a national sample of 1,012 adults aged 18 and over residing in the U.S. was interviewed via Ipsos’ U.S. online omnibus.  Among them, 177 reported that they plan to buy a home within the next 3 years, which qualifies them as “prospective home buyers.”  A survey with an unweighted probability sample of 1,012 and a 100% response rate would have an estimated margin of error of +/-3.1 percentage points 19 times out of 20, of what the results would have been had the entire population of adults in the U.S. been polled.  The margin of error for a subgrouping of the survey population of 177 individuals would be +/-7.4.  These data were weighted to ensure the sample’s regional and age/gender composition reflects that of the actual U.S. population according to data from the U.S. Census Bureau and to provide results intended to approximate the sample universe.  All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

CONTACT: Jill Simmons, Zillow.com, +1-206-757-2794, press@zillow.com

Web Site: http://www.Zillow.com

Easy Mortgage Comparison Shopping From Zillow

Easy Mortgage Comparison Shopping From Zillow

Easy Mortgage Comparison Shopping From Zillow-Image via CrunchBase

Zillow iPhone App now provides home shoppers with tools to research, shop for and compare mortgages

Zillow® (NASDAQ: Z), the leading real estate information marketplace, today announced the expansion of the Zillow iPhone® App, the most popular real estate app on the platform, by adding the rich experience of Zillow Mortgage Marketplace. Financing is an integral part of the home-buying process and whether home shoppers are at the beginning, middle or end of the process, mortgage information is essential. This integration gives Zillow iPhone App users easy access to research, shop for and compare mortgages, without ever leaving the app they use to search for homes.

“At Zillow, a significant part of our usage now comes from mobile – home shoppers are viewing more than 2.5 million homes on Zillow every day from a mobile device, which equates to 28 homes every second,” said Zillow CEO Spencer Rascoff. “Real estate is inherently mobile, and our goal is to provide people with information about homes – and home financing – whenever and wherever they need it.”

Home shoppers use the Zillow iPhone App to search for and find homes, and connect with local real estate agents. With the integration of Zillow Mortgage Marketplace, home shoppers now have instant access to important financial information and tools whenever they need it during the home-shopping process – whether they are standing in the living room of their dream home for sale, or getting ready to make an offer.

In addition to integration with the core Zillow iPhone App, Zillow Mortgage Marketplace also operates a standalone app. The Zillow Mortgage Marketplace App includes the following, which now are also available within the Zillow iPhone App:

  • The Payment Calculator helps consumers estimate what their monthly payment will look like for a particular home that interests them.
  • The Affordability Calculator helps shoppers narrow their home search to those within a specific price range.
  • The mortgage shopping experience enables users to request and receive personalized loan quotes, read lender reviews, and connect with a lender to start the pre-approval process with one tap of their finger.

Other updates to the Zillow iPhone App include faster map performance, and ease-of-use improvements in saving searches, filtering, and managing saved searches. The new Zillow iPhone App home screen makes it easier to access favorites, saved searches and mortgage calculators.

The Zillow iPhone App and Zillow Mortgage Marketplace Apps are available for download in the App Store under the Lifestyle and Finance categories, respectively.

Zillow operates the most popular platform of mobile real estate applications across iPhone, iPad®, Android™, Blackberry® and Windows® Phone 7.

About Zillow, Inc.

Zillow (NASDAQ: Z) is the leading real estate information marketplace, providing vital information about homes, real estate listings and mortgages through its website and mobile applications, enabling homeowners, buyers, sellers and renters to connect with real estate and mortgage professionals best suited to meet their needs. More than 24 million unique users visited Zillow’s websites and mobile applications in September 2011. Zillow, Inc. operates Zillow.com®, Zillow Mortgage Marketplace, Zillow Mobile and Postlets®. The company is headquartered in Seattle.

Zillow, Zillow.com and Postlets are registered trademarks of Zillow, Inc.
iPhone and iPad are registered trademarks of Apple, Inc.
Android is a trademark of Google Inc.
Blackberry is a registered trademark of Research in Motion Limited.
Windows is a registered trademark of Microsoft Corporation.

CONTACT: Cynthia Nowak of Zillow, +1-206-757-2701, press@zillow.com

Web Site: http://www.zillow.com

Real Estate Values Decline in 4th Quarter

Real Estate Values Decline in 4th Quarter

Real Estate Values Decline in 4th Quarter-Image via Wikipedia

Negative Equity Rises to 27%; Foreclosure Moratoriums at Least Partly Responsible for Increase, According to Q4 2010 Zillow® Real Estate Market Reports

Home values in the United States posted their largest quarterly decline since the first quarter of 2009, falling 2.6 percent as the temporary stimulus of the home buyer tax credits wore off, according to Zillow’s fourth quarter Real Estate Market Reports(1). The Zillow Home Value Index(2)  declined 5.9 percent year-over-year in the fourth quarter to $175,200. Home values have fallen 27 percent since they peaked in June 2006.

Accelerating home value declines, as well as a slowdown in the nation’s foreclosure rate following the late-2010 robo-signing controversy, contributed to an increase in negative equity. At the end of the fourth quarter, 27 percent of single-family homeowners with mortgages owed more on their mortgage than their homes were worth, up from 23.2 percent in the third quarter.

Less than one in every 1,000 (0.09 percent) U.S. homes were liquidated in foreclosure(3) in December, down from 0.12 percent in October, when foreclosure liquidations peaked. Foreclosures are expected to increase again in early 2011, which may cause negative equity to fall as some underwater homeowners lose their homes to foreclosure and are no longer in negative equity.

With the end of the homebuyer tax credits in mid-2010, home value declines accelerated toward the end of the year. When they were in effect, the credits tempered home values declines – nationally, home values fell only 0.9 percent from the first to the second quarter of 2010 – but values resumed their decline after the credits’ expiration, falling 2.6 percent from the third to the fourth quarter.

“While the tax credits did not hurt the housing market, they did delay its bottom by interrupting the housing correction that was taking place,” said Dr. Stan Humphries, Zillow chief economist. “Home value trends in the fourth quarter remained grim, but the good news is that these declines, while painful in the short-term, mean we’re getting closer to the bottom. The housing recession is likely in its death throes, and we expect to see sales pick up in early 2011. That will lead the way to home values stabilizing and an eventual bottom later this year, although it will take several months of increased sales activity before values begin to respond.”

Largest 25 Metropolitan Statistical Areas Covered by Zillow Zillow Home Value Index
Q4 2010 QoQ Change YoY Change Change from Peak Negative Equity*
United States $175,200 -2.6% -5.9% -26.7% 27.0%
New York, NY $351,900 -2.4% -5.0% -23.0% 15.0%
Los Angeles, CA $399,000 -3.3% -3.1% -34.0% 20.2%
Chicago, IL $175,100 -6.5% -11.3% -35.8% 38.6%
Dallas, TX $125,300 -4.1% -6.0% -13.6% n/a
Philadelphia, PA $191,000 -4.3% -9.4% -18.2% 19.6%
Miami-Fort Lauderdale, FL $139,100 -3.3% -15.4% -54.8% 42.8%
Washington, DC $309,100 -2.5% -5.0% -29.6% 26.0%
Atlanta, GA $128,100 -4.3% -15.3% -27.5% 54.0%
Detroit, MI $73,200 -7.5% -17.4% -52.3% 33.3%
Boston, MA $314,200 -3.2% -1.9% -21.3% 13.9%
San Francisco, CA $485,700 -4.1% -5.0% -31.3% 22.6%
Phoenix, AZ $129,300 -2.5% -11.6% -53.6% 69.9%
Riverside, CA $190,000 -1.3% 0.1% -52.7% 50.1%
Seattle, WA $262,100 -4.3% -12.4% -30.8% 34.3%
Minneapolis-St. Paul, MN $166,300 -5.8% -12.1% -31.9% 42.3%
San Diego, CA $353,700 -3.4% -1.2% -34.3% 21.8%
St. Louis, MO $130,400 -6.1% -7.0% -17.2% 33.9%
Tampa, FL $111,900 -3.0% -9.0% -48.4% 48.4%
Baltimore, MD $223,800 -3.2% -9.7% -24.9% 24.0%
Denver, CO $198,100 -3.5% -6.4% -14.9% 40.7%
Pittsburgh, PA $105,400 -2.1% -0.8% -4.8% 9.3%
Portland, OR $209,900 -5.2% -12.0% -29.0% 32.0%
Cleveland, OH $112,800 -4.0% -5.2% -21.8% 37.6%
Sacramento, CA $216,200 -4.2% -6.8% -47.4% 46.8%
Orlando, FL $118,800 -3.7% -11.1% -54.4% 61.7%
*Negative equity refers to the % of single-family homes with mortgages.

The accelerated decline in home values brought trouble for home sellers, as more were forced to sell their home for less than they purchased it. The rate of homes selling for a loss reached a new peak in December, with more than one-third (34.1 percent) selling for a loss. The rate of homes sold for a loss has increased steadily for the past six months.

The full national report, in its interactive format, is available at www.zillow.com/local-info.  Additionally, in most areas data is available at the state, metro, county, city, ZIP and neighborhood level.

About Zillow.com®

Zillow.com is an online real estate marketplace where homeowners, buyers, sellers, renters, real estate agents and mortgage professionals find and share vital information about homes and mortgages. Launched in early 2006 with Zestimate® home values and data on millions of U.S. homes, Zillow has since added homes for sale and homes for rent, a directory of real estate and lending professionals, Zillow Advice, Zillow Mobile apps and Zillow Mortgage Marketplace. One of the most-visited U.S. real estate websites, with more than 15 million unique visitors per month, Zillow’s goal is to help people become smarter about homes and real estate in every stage of their lives — home buying, selling, renting, remodeling and financing.  The company is headquartered in Seattle.

Zillow.com, Zillow and Zestimate are registered trademarks of Zillow, Inc.

(1) The data in Zillow’s Real Estate Market Reports is aggregated from public sources by a number of data providers for 132 Metropolitan Statistical Areas dating back to 1996. Mortgage and home loan data is typically recorded in each county and publicly available through a county recorder’s office.

(2) The Zillow Home Value Index is the median Zestimate® valuation for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. The Home Value Index at the national level is calculated using a weighted average of the median home value for each county and includes data from 440 metropolitan statistical areas. It is expressed in dollars and is for a particular geographic region.

(3) Foreclosures are defined as a Trustee’s Deed Upon Sale or equivalent transaction.

CONTACT: Katie Curnutte of Zillow.com, +1-206-757-2701, press@zillow.com

Web Site: http://www.zillow.com

Real Estate: Zillow Hits a Record Month

Real Estate: Zillow Hits a Record Month

Real Estate: Zillow Hits a Record Month-Image via CrunchBase

Real estate information company Zillow Inc. wrapped up 2010 with a record-breaking traffic month, which capped a year of significant business announcements and usage milestones. Zillow logged more than 13 million unique users(i) in the traditionally slow real estate month of December, the most in any month since the company’s launch in 2006. That represents year-over-year traffic growth of 77 percent.

Additionally, Zillow is now running the largest online real estate ad network in the country(ii) thanks to a partnership with Yahoo! Real Estate, which was announced in July. Zillow sells real estate advertising for both sites and, beginning in the first quarter of 2011, will power all for-sale listings on Yahoo! Real Estate.

Zillow Inc.’s individual business units, Zillow.com®, Zillow Mobile and Zillow Mortgage Marketplace, all logged important milestones during 2010.

Additional milestones include:

  • Zillow Mobile launched apps on Android and iPad in early 2010, in addition to continuing to operate the number-one real estate app on the iPhone. Consumers now look at homes 20,000 times per hour while using Zillow Mobile. The Zillow apps are the most popular real estate apps on iPhone, iPad and Android.
  • Zillow Inc. became profitable in 2010.
  • Former COO Spencer Rascoff was promoted to CEO of Zillow Inc. in September. He replaced Zillow co-founder Rich Barton, who remains with Zillow as executive chairman.
  • There are now nearly 100 million homes in Zillow’s database of all homes; 4 million are for sale and more than 170,000 are for rent.
  • Zillow in September announced a partnership with Apartments.com, which brought Apartments.com’s national database of rental listings to Zillow.com and Zillow Mobile.
  • Zillow Mortgage Marketplace became Zillow Inc.’s fastest-growing business, receiving nearly 300,000 consumer loan requests per month.
  • Data from Zillow’s real estate economics arm, including the Zillow Home Value Index, was widely used by academic and government institutions during 2010. Zillow data appeared in reports by the Congressional Oversight Panel, several branches of the Federal Reserve and numerous academic institutions.

“The past year has been a monumental one for Zillow,” said Zillow CEO Spencer Rascoff. “We accomplished many of our goals. Zillow is profitable and, thanks to innovations and partnerships like the one we have with Yahoo! Real Estate, we’re an even greater resource for consumers and real estate professionals alike. We’re looking forward to celebrating our fifth anniversary in 2011 with anticipation and high hopes for the year to come.”

About Zillow Inc.

Zillow Inc. is a real estate information company with a marketplace where homeowners, buyers, sellers, renters, real estate agents and mortgage professionals find and share vital information about homes and mortgages. Launched in early 2006 with Zestimate® home values and data on millions of U.S. homes, Zillow has since added homes for sale and homes for rent, a directory of real estate and lending professionals, Zillow Advice, Zillow Mobile apps and Zillow Mortgage Marketplace. One of the most-visited U.S. real estate websites, with more than 13 million unique visitors per month, Zillow’s goal is to help people become smarter about homes and real estate in every stage of their lives — home buying, selling, renting, remodeling and financing.  The company is headquartered in Seattle.

Zillow.com, Zillow and Zestimate are registered trademarks of Zillow, Inc.

(i) Unique users to Zillow are measured by Omniture, December 2010.

(ii) The Zillow/Yahoo! Real Estate Network was the most-visited real estate entity (including both networks and individual websites) as measured by comScore Media Metrix Key Measures — Ranked Category, November 2010.

Homeowners in Trouble Reaches New High

Homeowners in Trouble Reaches New High

Homeowners in Trouble Reaches New High-Image via CrunchBase

The United States housing market continued its long decline in the third quarter with home values falling for the 17th consecutive quarter, according to Zillow Real Estate Market Reports(1). With home values 25 percent below their June 2006 peak, the current housing downturn is approaching Great Depression-era declines, when home values fell 25.9 percent in five years(2).

The Zillow Home Value Index(3) declined 4.3 percent year-over-year in the third quarter and 1.2 percent from the second quarter to $179,900.

Nearly one-quarter, or 23.2 percent of single-family homeowners with mortgages, were underwater on their mortgage in the third quarter, the highest it has been since Zillow began tracking negative equity in 2009. It rose from 22.5 percent in the second quarter.

In some markets, as many as four out of five single-family homeowners with mortgages were underwater on their mortgages in the third quarter. Las Vegas had the highest percentage, with 80.2 percent in negative equity, followed by Phoenix with 68.4 percent. In total, 11 markets tracked by Zillow had negative equity above 50 percent.

Home values fell from the second to the third quarter in 77 percent of markets covered in Zillow’s report. In five of those markets – the California MSAs of Los Angeles, San Diego, San Francisco, San Jose and Ventura – home values began to fall again after five consecutive quarters of increases. Other markets that showed signs of stabilization in previous quarters also faltered, with home values flattening or becoming negative in large MSAs like Boston and Denver.

“While not unexpected, the unceasing declines in home values signal that we’re in for a long, bleak winter of continued troubles for the housing market,” said Zillow Chief Economist Dr. Stan Humphries. “The length and depth of the current housing recession is rivaling the Great Depression’s real estate downturn, and, with encouraging signs fading, will easily eclipse it in the coming months.

“The high percentage of homeowners in negative equity continues to be troubling, in that it represents a huge number of people who are not only more vulnerable to foreclosure, but who are essentially trapped in their current homes and are prevented from selling and buying a new home. This has profound implications for future demand and will be a millstone around the neck of the housing market.”

Largest 25 Metropolitan Statistical Areas Covered by Zillow Zillow Home Value Index
Q3 2010 QoQ Change YoY Change Change from Peak Negative Equity*
United States $179,900 -1.2% -4.3% -25.0% 23.2%
New York, NY $362,000 -0.8% -3.3% -20.7% 13.0%
Los Angeles, CA $417,000 -0.8% 2.3% -31.1% 17.4%
Chicago, IL $189,600 -2.6% -6.6% -30.1% 32.9%
Dallas, TX $131,300 -2.1% -1.8% -8.4% n/a
Philadelphia, PA $203,400 -1.7% -3.1% -13.5% 14.2%
Miami-Fort Lauderdale, FL $143,300 -4.2% -15.2% -53.3% 42.0%
Washington, DC $316,500 -2.6% -3.1% -27.3% 23.6%
Atlanta, GA $134,200 -5.3% -13.2% -26.0% 37.6%
Detroit, MI $81,300 -2.8% -10.8% -48.3% 30.0%
Boston, MA $328,600 0.1% 1.6% -17.5% 9.5%
San Francisco, CA $512,700 -1.5% 1.5% -27.4% 20.2%
Phoenix, AZ $131,400 -4.1% -12.8% -53.1% 68.4%
Riverside, CA $193,300 0.0% 0.9% -52.0% 48.1%
Seattle, WA $273,500 -4.3% -10.6% -28.2% 27.7%
Minneapolis-St. Paul, MN $177,200 -3.5% -7.8% -28.2% 36.8%
San Diego, CA $370,600 -0.7% 4.2% -31.1% 19.6%
St. Louis, MO $138,100 -2.4% -3.4% -12.3% 22.2%
Tampa, FL $115,700 -1.9% -9.1% -46.3% 46.8%
Baltimore, MD $231,800 -2.7% -8.6% -22.2% 20.8%
Denver, CO $206,100 -2.6% -2.7% -11.4% 34.6%
Pittsburgh, PA $110,300 2.6% 1.6% -1.4% 6.3%
Portland, OR $223,500 -2.6% -9.1% -24.3% 25.2%
Cleveland, OH $118,500 -1.0% -2.4% -17.7% 33.0%
Sacramento, CA $227,500 -2.1% -3.2% -44.9% 39.6%
Orlando, FL $123,400 -1.9% -11.9% -52.1% 64.2%
*Negative equity refers to the % of single-family homes with mortgages.

As home values continue to fall, additional signs of trouble have emerged. Foreclosures(4) reached a new all-time peak, with 1.2 out of every 1,000 homeowners in the country losing their homes to foreclosure in September. Sales of homes previously foreclosed in the past 12 months reached a near-peak level in September, with foreclosure re-sales(5) making up more than one-fifth (20.1 percent) of all sales. The last time foreclosure re-sales reached similar levels was in March 2009, when they made up 20.5 percent of all sales.

Additionally, more than one-quarter (27.3 percent) of homes sold in September were sold for a loss, marking a near-peak level. Homes sold for a loss peaked in February 2010, with 27.7 percent.

The full national report, in its interactive format, is available at www.zillow.com/local-info.  Additionally, in most areas data is available at the state, metro, county, city, ZIP and neighborhood level.

About Zillow.com®

Zillow.com is an online real estate marketplace where homeowners, buyers, sellers, renters, real estate agents and mortgage professionals find and share vital information about homes and mortgages. Launched in early 2006 with Zestimate® home values and data on millions of U.S. homes, Zillow has since added homes for sale and homes for rent, a directory of real estate and lending professionals, Zillow Advice, Zillow Mobile apps and Zillow Mortgage Marketplace. One of the most-visited U.S. real estate websites, with more than 12.5 million unique visitors per month, Zillow’s goal is to help people become smarter about homes and real estate in every stage of their lives — home buying, selling, renting, remodeling and financing.  The company is headquartered in Seattle and has raised $87 million in funding.

Zillow.com, Zillow and Zestimate are registered trademarks of Zillow, Inc.

(1) The data in Zillow’s Real Estate Market Reports is aggregated from public sources by a number of data providers for 145 Metropolitan Statistical Areas dating back to 1996. Mortgage and home loan data is typically recorded in each county and publicly available through a county recorder’s office.

(2) Nominal home values fell in the five years between 1929-1933, declining a total of 25.9 percent, according to statistics from Irrational Exuberance by Robert J. Shiller, 2nd. Edition, Princeton University Press, 2005, 2009, Broadway Books 2006, also Subprime Solution, 2008. The Zillow Home Value Index began falling in July 2006, and has fallen 25 percent since the market peak.

(3) The Zillow Home Value Index is the median Zestimate® valuation for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. The Home Value Index at the national level is calculated using a weighted average of the median home value for each county and includes data from 440 metropolitan statistical areas. It is expressed in dollars and is for a particular geographic region.

(4) Foreclosures are defined as a Trustee’s Deed Upon Sale or equivalent transaction.

(5) Foreclosure re-sales capture mostly sales of bank-owned (REO) homes. It measures sales of homes that were foreclosed on in the previous 12 months.

SOURCE Zillow.com

CONTACT: Katie Curnutte of Zillow.com, +1-206-757-2785, press@zillow.com

Web Site: http://www.zillow.com