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Zillow Forecasts an 8 percent to 10 percent Rise in Alameda Home Prices This Year

Zillow is forecasting a home value jump of roughly 10% in Alameda this year.

Zillow is forecasting a home value jump of roughly 10% in Alameda this year.

Zillow, a housing information service and marketplace, is forecasting an 8% to 10% percent rise in home prices in Alameda this year, coming off a bottom in the first quarter of last year.

The forecasts are made in reference to the Zillow Home Value Index, which is an estimate of the median home value in a given geographic area on a certain date.

The company is forecasting a 10.4 percent rise in its Zillow Home Value Index this year for the 94501 zip code, which covers the main island of Alameda. That increase would take the index from $577,500 in December 2012 to a forecasted $637,368.

For Bay Farm Island, zip code 94502, Zillow is forecasting a 8.2 percent rise from an index value of $598,700 in December of last year to an estimated $647,569 index value in December of this year.

Those numbers correspond to an overall projected rise in Bay Area home values for the year.

Further, Zillow says that home prices in both 94501 and 94502 hit bottom in the first quarter of last year, dropping 18.4 percent and 19.3 percent, respectively, from their peaks.

To fully recover a 20 percent loss from a peak requires a 25 percent gain from the bottom. This means that for house prices to fully recover, they must realize sharper gains than past losses.

The numbers echo the sentiment reflected in numbers from Trendgraphix, a real estate information service for brokers and agents, mailed recently to Alameda households from an Alain Pinel Realtors affiliated agent.

That data shows that the average price per square foot for sold homes increased 22.9 percent between January and December of last year. Most of the homes sold in Alameda last year sold in the first six months of the year. But the overall number of homes for sale decreased 83.5 percent between the first and last month of the year.

Prices tend to rise as the inventory of “for sale” homes decreases.

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