Cracked Glass Found in Home Prices Crystal Ball

Cracked Glass Found in Home Prices Crystal Ball

Who doesn’t want to know what will happen in the future? That’s a very small group, for sure, since good planning is a cornerstone of good management -- for households as well as for organizations of every kind.

So, whenever Denver homeowners see headlines like “Home Prices Up ‘Unsustainable’ 5.9% in 2012,” above a MarketWatch article that explains that price growth is expected to slow, they probably would like to gauge the reliability of the forecasters.

In this case, MarketWatch is part of the relatively stalwart Wall Street Journal, so credibility goes up. But closer examination finds that the author is just reporting information real estate site Zillow compiled. Zillow is indeed an internet behemoth -- but can  Castle Rock  Centennial  Cherry Hills Village  Greenwood Village  homeowners rely on its national predictions to gauge  Castle Rock  Centennial  Cherry Hills Village  Greenwood Village      home prices?

My own take is to find out how well has this source done in the past…

Looking back a very short while ago (to December 26 of last year), I find that Zillow’s survey of 100 economists and forecasters “said they expect home prices to increase in full-year 2012 by 4.6%.”

Hey! Hold it! This is only February, but now the same outfit is telling us that the actual home prices gain last year was 5.9%. Doing a little arithmetic, it seems that the 100 economists and forecasters, faced with the task of estimating home prices for a year that had just a week left, were off by 28%! (They also acknowledge that the same panel had predicted the rise would be 2.3% only three months earlier).

So I guess it’s not that surprising that they feel home price rises like last year’s are going to be ‘unsustainable’ in 2013. Apparently the actual home prices were unsustainable last year, too!

Since real estate and home prices in  Castle Rock  Centennial  Cherry Hills Village     Greenwood Village   are inherently local, it takes on-the-ground expertise to keep up with them.  If you’d like to know where your home falls in today’s market, contact me now to schedule an initial consultation.  I think we’re getting ready for an interesting spring season —and I’d love to help you explore your options!


Jason Peck is part of Carr, Peck & Associates at Keller Williams. He has been recognized locally and nationally as in expert in real estate. Locally, he is one of the top selling agents in the Denver Metro Area out of 5,000 agents and has been recognized by the Wall Street Journal and Real Trends as one of the top selling agents in the country. He is co-author of the National Best Selling Book, “The New Rise in Real Estate”. For more information feel free to call him at 720-588-3110.

Photo provided by www.freedigitalphotos.net


Jason Peck Headshot
Author:
Phone: 720-446-6301
Dated: February 24th 2013
Views: 2,549
About Jason: ...

Property Search








RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Open House 3745 S Walden Way Aurora CO 80013 - HOME FOR SALE 3745 S WALDEN WAY
Remodel With Main Floor Master And Stunning In Law Suite - Open House on Sat 9/16 from 1 pm -
Open House At 13676 E 5th Pl Aurora CO 80011 - Open house Monday, 9/11 from 2-4pm
Open House In Columbine West Neighborhood - 8212 W Quarto Drive Saturday

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Keller Williams Realty Downtown LLC
901 Auraria Parkway Suite 301
Denver, CO
720-279-9925


Other Locations