Two surveys on home values released last week have uncovered slightly different data: One says prices have remained virtually unchanged in 1995, and the other sees a moderate increase.
The TRW Redi Property Data repeat sales index, based on recorded deeds in more than 100 major U.S. metropolitan areas, shows that home values declined 0.7% in July 1995 from a year earlier.
Additionally, the report shows that homes are worth just 1.8% more than they were in 1990, far below the inflation rate.
In sharp contrast, the Case Shiller Weiss Inc. home value study shows prices jumping 7.2% from January 1990 through June 1995, with a 1.9% increase last year. Of that 1.9%, most of the growth (1.4%) occurred from March to June 1995.
According to the Case Shiller Weiss study, the Rocky Mountain region has seen the most significant growth in home values growth since 1990, with prices increasing 29.6% in that time period and 6.4% in the past year. Home prices in Denver alone have increased 49.7% since 1990, the study found. The TRW Redi study also found strong growth in that area, with Salt Lake City ahead 15% last year.
Michigan is pegged as another hot spot by TRW Redi, with Battle Creek, Ann Arbor, and Grand Rapids all ranking among the top 20 metropolitan areas in terms of home appreciation. Duluth, Minn., Columbia, Mo., and Las Vegas all also experienced good growth for the year.
The clear home value loser in both studies is the West Coast, with Los Angeles leading the pack. Both show a more than 25% loss in home values since 1990 for that city.
The Northeast continues to remain a trouble spot, with both studies showing depreciating pricing.
The outlook for home prices during the next year will continue to vary from region to region, according to Nima Nattagh, TRW Redi's market analyst.
