SmartZip’s New Housing Recovery Index Displays Metro and City Level Housing Market Trends

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The New SmartZip Housing Recovery Index Indicates U.S. in Stable Recovery with Significant Gains.

Online display of housing recovery trends in the U.S.

SmartZip Housing Recovery Index

Many metros that took a big hit in the crash, while not fully recovered yet, are recovering at a very rapid pace.

SmartZip Analytics, Inc., a national leader in data, analytics, and predictive marketing solutions for the real estate industry, today released its Housing Recovery Index (SmartZip HRI), a unique measure of the changes in US home prices before and after the housing crash of the last decade, represented in an interactive, data visualization at both the city and metro levels. The SmartZip HRI shows metros in the San Francisco Bay area and Greater Los Angeles area demonstrating the fastest recovery yet still slightly off their peak; while the more resilient markets, such as Denver and Dallas, have fully recovered and are now in positive territory. The new index provides a useful way to understand and compare how the housing recovery is unfolding in local markets across the US.

“In most US markets, home prices have regained some lost ground recently,” said Dr. Thomas Davidoff, economist & assistant business professor at the University of British Columbia. "Some of the largest recent gains have come in markets hardest hit by the downturn, where opportunistic investors have concentrated their activities."

SmartZip’s HRI is based on SmartZip’s proprietary Neighborhood Home Price Index (SNHPI), which is a monthly measure of the price of residential housing based on the repeat sales of homes in a given area. The SNHPI is calculated from data on sales of similar homes over time, and tracks more accurately the monthly growth and decline in home prices over a period of 10 or more years. Each sales pair that’s observed is grouped with all other sales pairs found within the area to create a highly localized, neighborhood-level index.

“SmartZip’s HRI is displayed in an interactive tool that allows side-by-side comparisons of housing recovery in metros or cities, revealing helpful insights into relative housing market trends,” said SmartZip’s president and CEO, Avi Gupta. “The index currently provides home price trends for 3,500 cities and all of the metropolitan and micropolitan areas in the United States.” The four quadrants of the chart indicate which metros or cities are showing stability, sluggishness, volatility or resilience in home prices. U.S. metros and cities are also color-coded based on their location in the four major U.S. regions: Midwest, Northeast, South, and West.

TOP 20 BEST RECOVERING METROS IN THE U.S.*

1. San Francisco-Oakland-Fremont, CA
2. Anchorage, AK
3. Phoenix-Mesa-Scottsdale, AZ
4. Washington-Arlington-Alexandria, DC
5. Fort Collins-Loveland, CO
6. Boulder, CO
7. Greeley, CO
8. Honolulu, HI
9. Denver-Aurora, CO
10. Merced, CA
11. San Diego-Carlsbad-San Marcos, CA
12. San Luis Obispo-Paso Robles, CA
13. San Jose-Sunnyvale-Santa Clara, CA
14. Provo-Orem, UT
15. Stockton, CA
16. Los Angeles-Long Beach-Santa Ana, CA
17. Modesto, CA
18. Salt Lake City, UT
19. Ogden-Clearfield, UT
20. Salinas, CA

*Based on SmartZip Housing Recovery Index and metros having at least 50,000 residential properties.

"Many metros that took a big hit in the crash, such as San Francisco, Los Angeles and Phoenix - while not fully recovered yet, are recovering at a very rapid pace,” said Ashutosh Malaviya, SmartZip’s chief technology officer. "Whereas the more stable markets that showed a very small decline during the housing crash, such as Dallas, are actually going well beyond recovery and leading the country in net positive gains."

METHODOLOGY
SmartZip’s HRI is a measurement of the behavior of an area’s SNHPI. It takes into account the delta between an area’s worst performing year (trough) and best performing year (crest), the distance between these two points in time (amplitude), as well as how this relates to the present state of the area. The SNHPI uses advanced geo-spatial algorithms and fuzzy clustering to account for gaps in the data where the number of repeat sales is low. This patent pending technology allows for a greater level of geographical resolution than the other commonly used indices. The SNHPI also employs a series of measures to eliminate outliers and anomalies in data, and applies a range of statistical techniques to get robust, high-confidence results. The SNHPI has coverage of roughly 65,000 Census Tracts, and can be aggregated up to nearly every Zip Code, City, County, CBSA and State in the U.S., allowing for a multi-tiered evaluation of the housing market in nearly every residential neighborhood in the nation.

Additional content on the housing market may also be found on SmartZip’s SmartTalk blog. Real estate market analysts interested in learning more about SmartZip’s HRI can visit: http://www.smartzip.com/corp/blog/recovery-index/ or call 888.402.7960.

SmartZip Analytics, Inc.

SmartZip Analytics is a national leader in predictive marketing solutions for real estate and related industries. Using patent-pending home intelligence, predictive analytics, and automated marketing campaigns, SmartZip’s SmartTargeting platform offers an integrated solution that can identify top prospects accurately and help reach them through precisely targeted online and offline marketing channels. In addition, leading national real estate companies, including Realtor.com, Homes.com, Foreclosure.com, HomeSnap, RealtyStore.com and others rely on SmartZip’s best-of-breed analytics for their online businesses.

SmartZip is backed by Intel Capital, Claremont Creek Ventures and Javelin Venture Partners, and headquartered in Pleasanton, CA.

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