The latest Collateral Analytics (CA) research article analyzes the impact of various types of water frontage on home values across the U.S. This new study is the first to analyze all types of waterfront properties in the U.S., and finds that oceanfront properties account for the highest, on-average premiums of nearly 45 percent, followed by lakes and rivers, Collateral Analytics announced in a press release.
In this study, the CA research team used specific classifications based upon CA’s proprietary waterfront database which uses advanced geographic information systems (GIS) techniques to identify and analyze sales data on approximately 1.2 million waterfront residential properties as of 2018, combined with several million transactions in the same zip codes to estimate net waterfront effects on value, the release said.
“At Collateral Analytics, we continuously work to improve our valuation models by incorporating new and better measures of those factors which influence home values. Waterfront locations are particularly important because, while exceptional in nature, they are associated with significant variation in price levels and valuation accuracy,” Collateral Analytics President Michael Sklarz said.
For more information about Collateral Analytics and its comprehensive real estate and mortgage analytic solutions, visit www.collateralanalytics.com