Much of housing market still lags behind pre-recession prices

by Anna Sobrevinas09 May 2017
Want to know the real state of the nation’s housing market?

It’s having a hard time moving on.

New data from Trulia revealed that nationwide, only 34.2% of all homes have rebounded to their pre-recession peak value.

With income as a driving force, some markets like Seattle and San Jose, Calif., have surpassed their pre-recession peaks. And Denver and San Francisco prices have reached 98% of their pre-recession value. Denver’s median peak value was $237,071 and as of March 2017, its median home value was $356,749; San Francisco had a median peak value of $830,595, and in March this year has reached a whopping median home value of $1,112,438.

Looking at the price trends of 100 metros analyzed by Trulia, markets in the West, South and Midwest were quick to recover. The West had some regional economies that were quick to recover, while the South and Midwest had some markets – like Nashville, Fort Worth, Texas, and Tulsa, Okla. – where home values that weren’t badly affected by the crash.

On the other hand, Las Vegas, Tucson, Ariz. and Fresno, Calif. had the least home value recovery. Las Vegas has seen less than a percent of its homes recover to its pre-recession peak, with a median peak value of $306,028 and a dismal $214,630 for its median home value in March 2017. Tucson and Fresno followed, with only 2.4% and 2.5% in recovery of homes to their pre-recession value, respectively. Most of the affected areas with the least recovery were in the Rust Belt or areas that severely suffered during the housing crisis.

Recovery has been slow, with only five to six percentage points of increase in recovery to pre-recession values per year. At that rate, 100% recovery won’t be seen until approximately September 2025, according to Trulia.

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