Home Prices Soar in Western Markets

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Patty McNease
Patty@Homes.com

57 percent of America’s top 300 markets now fully recovered

NORFOLK, Va. (November 30, 2015) – Homes.com®, leading online real estate destination, has released its September 2015 Local Market Index, a price performance summary of repeat sales in the top 100 markets, and the companion Midsize Markets Report for the next 200 largest markets. Among the nation’s top 300 markets, a total of 170 or 57 percent have now achieved full price recovery.

By September, 53 out of the top 100 markets showed a complete price recovery – two more than reported in August – with an additional 117 out of 200 midsize markets continuing to see recovery above pre-recession levels.

San Francisco-Oakland-Hayward, CA led the nation in September for the largest annual percentage change in pricing at 7.97 percent. Denver-Aurora-Lakewood, CO came in second with a 7.73 percent annual price increase, and Portland Vancouver-Hillsboro, OR-WA was third at 7.29 percent.

“The housing recovery continued at a steady pace in September, as two of the nation’s largest markets joined the ranks of the fully restored. More big cities are on the way toward recovery; 39 of the 100 largest markets are within 25 percent of reaching their peak prices. For homeowners in these markets and elsewhere, price recovery is restoring their lost equity and increasing their financial security,” said David Mele, president of Homes.com.

Rebound Trend Positive, Southern Markets Continue to Dominate

Memphis, TN-MS-AR and St. Louis, MO-IL were the two newest markets to rebound. Memphis reached 100.05 percent of its peak price and St. Louis 100.01 percent, respectively.

The South continued to dominate with 24 markets fully recovered, while the Midwest came in second with 12 markets recovered.

Of the top 100 markets, the markets with minimal price declines have rebounded with an average rebound of 109 percent. Of the moderate price decline markets, the average rebound percentage is at 102 percent of the prior peak price. Of the severe price decline markets, the average rebound percentage is 85 percent.

National Price Report— West Has Biggest Annual Gains, South Leads 3-Month Gains

For annual price gains, San Francisco-Oakland-Hayward, CA took the top spot away from Boise City, ID, which led in August and has now fallen to number four with a gain of 7.05 percent. Similar to last month, nine out of ten of the biggest annual gaining markets were located in the western region of the U.S., with Miami-Fort Lauderdale-West Palm Beach, FL being the only exception at spot number ten.

For the second month in a row, Augusta-Richmond County, GA-SC posted the largest 3-month percentage gain in pricing at 0.64 percent. This compares to 0.62 percent the prior month. Phoenix-Mesa-Scottsdale, AZ and Jackson, MS came in second and third place respectively with gains of 0.41 percent. Stockton-Lodi, CA fell from number two to seven in September with a gain of 0.38 percent.

The number of markets declining on a 3-month average basis was 10 out of 100 in September, which is the same number as in August. Measured year-over-year, all 100 markets remained positive.

From a regional perspective, the market with the largest 3-month average gain of 0.64 percent was located in the South. This was followed by the West at 0.41 percent. The worst performing market in September was located in the Midwest at -0.31 percent.

Largest Markets Summary

  • Top performing markets by region for the 3-month average were New Haven-Milford, CT, 0.36 percent (Northeast); Phoenix-Mesa-Scottsdale, 0.41 percent (West); Omaha-Council Bluffs, NE-IA, 0.37 percent (Midwest); and Augusta-Richmond County, GA-SC, 0.64 percent (South).
  • Portland and Stockton-Lodi were the only two markets to make the top ten lists for both annual and 3-month appreciation.
  • Of the largest 100 markets, the three with the lowest rebound percentage were Las Vegas-Henderson-Paradise, NV (69.02 percent); Cape Coral-Fort Myers, FL (71.7 percent); and Stockton-Lodi, CA (71.3 percent).

West Dominates Midsize Markets

The top three performing midsize markets measured over a 3-month average change in September were the same as in August. Wheeling, WV-OH saw a gain of 5.15 percent compared to 5.14 percent the previous month. Reno, NV was 0.68 percent higher compared to 0.86 percent, and Idaho Falls, ID was 0.67 percent higher compared to 0.79 percent. On the whole, short-term gains are still widespread across the country, but momentum appears to be slowing slightly. Six of the top 10 midsized markets are located in the West.

In September’s Local Market Report, 162 out of 200 midsize markets increased over a 3-month average, down from 168 last month. The greatest number of decreasing markets was found in the Midwest (22) and the South (8). As was the case with the Top 100, all midsize markets continued to show gains when measured year-over-year.

Midsize Markets by Region and Division:

  • Short-term strength remained well dispersed throughout the country in September, though gains are slowing.
  • The fastest gaining markets were located in the South Atlantic and Mountain divisions, while the weakest were found in the East North Central and South Atlantic divisions.

To receive a comprehensive data file, contact LocalMarketReports@Homes.com. To download a copy of the reports, visit press.homes.com/local-market-reports/.

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