I just received this news flash via email from Zillow:
Home values in Austin increased 8.7%
According to the latest Zillow Real Estate Market Reports, home values in Austin increased 8.7% in the first quarter of 2009, compared to the first quarter of 2008. Nationally, home values decreased 14.2% during this same period.
Uh, sorry Zillow, but that ain’t right. The algorithms or data is being used to produce that conclusion need to be re-examined. Let’s look at some stats for Austin and surrounding areas.
Q1 2008 vs. Q1 2009
City of Austin Sales
Zillow says: Sales prices are up 8.7%
Austin MLS says: Sales prices are down 0.65%
City of Cedar Park
Zillow says: Sales prices are up 2.5%
Austin MLS says: Sales prices are down 3.9%
City of Pflugerville
Zillow says: Sales prices are up 11.5%
Austin MLS says: Sales prices are down 3.76%
You can see where this is heading. Never has it been easier for so many real estate consumers to be so misinformed about the real estate market. Don’t believe news headlines quoting any of these internet sites about values.
Shame on Zillow and these other valuation websites for getting it so wrong. What’s even sadder is that I saw in a listing the other day a Realtor comment “priced $20K below Zillow value”. Huh?
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