Cromford Daily Observation - The appreciation rate for all areas & types, measured by the annual change in the monthly average closing price per square foot, exceeded 20% this week. The last time appreciation was over 20% was in August 2013.
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The line chart below plots average annual appreciation (based on monthly average sales price per square foot) on a weekly basis for the period 2002 onwards. This is the visual for the Daily Observation above.
The line chart below shows the annual appreciation based on the annual average sales price per square foot for single-family detached homes in the 17 largest cities by dollar volume.
The chart above is necessarily messy, to give you a rank-ordered city summary view for Annual Appreciation, based on Annual Average Sales Price per Sq / Ft - versus the first chart by tracking on a weekly basis gives us that alarming surge of 20% in the first chart.
Price range matters of course. So, here's a look at that breakdown:
A major takeaway here, besides the obvious 'surge' in appreciation, is how you can't broad brush, which is to say, this only reinforces the importance of your expert analysis of the comps to support the price of your subject property.
Looking forward, the question is, of course, sustainability.
We'll see, but no question that as long as the scale is tipped so heavily to demand over supply we can only expect more of same.
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