In the November 30 Wall Street Journal article “Home Prices Edge Downward,” the S&P/Case Shiller home price indexes show that New York metropolitan area home prices have declined 2.6 percent since September 2010; many metro areas have seen steeper declines. National statistics show home values are down 31 percent from their 2006 peak.
It is important to realize that a home’s market value is dependent on many things — price, supply and demand, seasonal markets, mortgage rates and financial markets, condition of the property and location, location, location. Real estate prices vary neighborhood to neighborhood and block to block.
Reports on national statistics and values stated on web-driven companies such as Zillow, Homes.com and Realtor.com are generated from computer-driven models which estimate values. These are many times “off” the true value of the home by thousands of dollars.
The December issue of Smart Money cites this problem in “The Fuzzy Math of Home Values,” stating that “these estimates are adding confusion to an already tricky housing market.”
To get a more accurate value for your home call your local real estate professional for a CMA — a Comparative Market Analysis. This analysis will look at the most relevant sales and inventory levels impacting your home’s current value and there is usually no cost for this.