US Home Values Increased by 6.5 Percent During 1999, First American Real Estate Solutions Reports


February 29, 2000, ANAHEIM, Calif.

A nationwide real estate information company reports that home values in the U.S. increased by more than 6.0 percent during 1999 continuing the upward trend of the last three years. The year-end analysis conducted by First American Real Estate Solutions, puts Los Angeles as the top performer, among the 35 major metropolitan areas studied, with almost a 14 percent increase. These latest figures show that although the 1999 increase in home values across the country did not match the rate recorded in 1998, increases continue to outpace the general rate of inflation helping homeowners to build equity. U.S. home values are now 23.6 percent higher than in the early 1990s when many homeowners saw stagnant or steep falls in property values

But this overall rate masks some noticeable regional differences in performance. In California, home values in Los Angeles, Riverside - San Bernardino and Sacramento are still below their peak in the early 1990s. Lackluster market conditions in Washington D.C. and Philadelphia throughout much of this decade, have also meant that growth in home values has barely kept pace with the general inflation rate. At the other end of the scale, homeowners in Portland, Oregon, and Denver, where values have more than doubled, have accrued a significant amount of equity in their homes. 

This latest annual data from First American RES also illustrate that some regions have clearly cooled off from the hectic market conditions during 1998. In New York, San Diego and Orange County, California, the double-digit rates of growth have subsided considerably but are still growing at a healthy rate. 

First American RES figures, which are based on a “ repeat sales model”, track the resale value of the same homes which have sold at least twice and show price trends based on gains or declines evidenced by these repeat sales. This method is considered by the industry to be a more accurate measure than changes in average or median prices of homes sold, as it eliminates trend shifts which occur from changes in the type of homes sold from one period to another. 

“Looking to the near future, increases in home values will moderate during the course of this year in line with an anticipated slower rate of economic expansion and higher mortgage cost," said Nima Nattagh, Research Director at First American RES. 

US : Change in Home Values from the Previous Year
(Based on a repeat sales model) 

 

US : Change in Home Values from the Previous Year
(Based on a repeat sales model) 

1991-1.5%
1992-0.4%
1993-0.1%
19942.3%
19950.4%
19963.0%
19974.3%
19987.3%
19996.5%

Change in Home values by Metropolitan Area
(Based on a repeat sales model) 

Metropolitan Area1998-19991990-1999
LOS ANGELES-LONG BEACH13.7%-8.0%
SAN FRANCISCO13.7%36.7%
DENVER12.8%119.2%
SAN JOSE11.9%44.0%
OAKLAND11.5%21.8%
BOSTON 11.3%30.2%
SAN DIEGO10.1%14.3%
CHICAGO9.8% 54.6% 
MINNEAPOLIS-SAINT PAUL 9.6% 52.6% 
SACRAMENTO 9.4% -3.5% 
STAMFORD-NORWALK 9.4% 26.8% 
RIVERSIDE-SAN BERNARDINO 9.2% -15.9% 
ORANGE COUNTY 8.6% 9.0% 
BERGEN-PASSAIC 8.0% 18.4% 
NEWARK 7.3% 18.5% 
SEATTLE-BELLEVUE-EVERETT 7.1% 55.5% 
PHOENIX-MESA7.0% 52.1% 
TAMPA-SAINT PETERSBURG-CLEARWATER 6.8% 32.4% 
WASHINGTON 6.8% 7.8% 
NEW YORK 6.7% 18.3% 
ATLANTA 6.7% 40.9% 
JACKSONVILLE 6.3% 30.5% 
BALTIMORE 6.0% 14.0% 
WEST PALM BEACH-BOCA RATON 5.6% 18.5% 
ORLANDO 5.6% 20.5% 
PHILADELPHIA 5.1% 7.4% 
ATLANTIC-CAPE MAY 5.0% 6.9% 
PORTLAND-VANCOUVER 4.9% 123.5% 
MIAMI 4.9% 37.3% 
HARTFORD 4.6% -15.5% 
NASHVILLE 4.6% 51.7% 
LAS VEGAS 4.5% 31.0% 
FORT LAUDERDALE 4.0% 26.7% 
RALEIGH-DURHAM-CHAPEL HILL 3.7% 47.2% 
CLEVELAND-LORAIN-ELYRIA 3.3% 49.5% 
US 6.5% 23.6% 

The First American Financial Corporation, based in Santa Ana, Calif., is the nation's leading provider of business information and related products and services. The corporation's three primary business segments include: title insurance; real estate information and services, which includes mortgage information services and database information services; and consumer information and services, which provides home warranties; automotive, subprime and direct-to-consumer credit reporting; property and casualty insurance; property and automotive insurance tracking services; resident screening; pre-employment screening; lender-placed flood and hazard insurance; investment advisory; and trust and banking services. Information about the company and an archive of its press releases can be found on the Internet at www.firstam.com.

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