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Takeaways:
- Nearly half of homes in the 10 largest U.S. markets lost value in May 2015.
- 54 percent of homes in the 10 largest markets appreciated during May.
- Los Angeles saw the biggest dip, with 94 percent of homes appreciating in May 2014, compared with just 46 percent in May 2015.
Median home price appreciation on a national and regional basis is occurring; however, nearly half of homes in the 10 largest U.S. markets lost value in May, according to Weiss Residential Research.
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“Don’t be fooled by averages,” said Allan Weiss, founder and CEO of the research firm. “All of the largest metro indexes are rising more slowly than they were a year ago, though market reports give the impression that values are rising across the board.”
On a house-by-house basis, roughly one-third fewer homes in the largest markets gained value during May when compared to the same month last year.
According to Weiss, 54 percent of homes in the 10 largest markets appreciated during May compared with 81 percent in May 2014, a sign that the downward trend may continue in the coming months.
Denver was cited as the top-performing major market, with 84 percent of homes gaining value in May. This would appear to be a positive thing, but a whopping 97 percent of Denver homes appreciated in May 2014.
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In May, other top-performing markets included:
- San Francisco (65 percent of homes increasing in value)
- Seattle (62 percent)
- Miami (59 percent)
- Atlanta (57 percent)
- Chicago (48 percent)
- Phoenix (47 percent)
- Los Angeles (46 percent)
- New York (40 percent)
Los Angeles saw the biggest dip, with 94 percent of homes appreciating in May 2014, compared with only 46 percent in May 2015.
The other markets’ appreciation totals from May 2014 are as follows:
- San Francisco (97 percent)
- Seattle (87 percent)
- Miami (90 percent)
- Atlanta (84 percent)
- Chicago (65 percent)
- Phoenix (79 percent)
- New York (58 percent)
Overall, larger homes are having a harder time than smaller homes with two bedrooms or less. In Denver, larger homes appreciated 5.8 percent on a year-over-year basis in May — smaller homes saw a 9 percent rise.
In Washington, D.C. – -weakest of the top 10 — only 34 percent of homes gained value in May compared with 57 percent in May 2014. The overall value of larger homes fell 0.7 percent year over year, with smaller homes declining by 0.2 percent.
“In today’s market, sellers should price their homes very carefully and research local conditions to avoid overpricing that could lead to an extended time on market in case prices do decline,” Weiss advised, adding that buyers should be careful to avoid buying a home that is on the verge of losing value.
