Home values increased 12 percent over past two years for top 300 markets
NORFOLK, Va. (October 27, 2014) – Homes.com®, leading online real estate destination, has released its August Local Market Index, a price performance summary of repeat sales in the top 100 markets, and the companion Midsize Markets Report for defined areas ranked 101-300. Among the nation’s top 100 largest markets, 76 markets increased their three-month average index point change, eight fewer than the prior month. Reviewing the midsize Midsize markets, 141 markets reported an increase over a three-month average, down 25 from the previous month. Of the combined top 100 markets and 200 midsize marketsMidsize Markets, 108 markets, or 36 percent, have achieved full pricing recovery, decreasing by one market from the July reports. Analyzing year-over-year gains, both the top 100 and midsize markets are showing signs of stabilizing, with average home equity gains at 4.57 percent for the year, compared to 7.4 percent in August 2013.
Of the nation’s 100 largest markets, Louisville/Jefferson County, Kentucky-Indiana had the highest percentage increase over a three-month period of 0.55 percent. The annual percentage increase for the top 10 markets in August was between six percent and nine percent, slightly lower than the eight percent and ten percent seen in the July report. Of the top ten markets posting the highest gains over a three-month average, two were in California and three were in Texas. Among these top 10, three-month average percentages ranged between 0.31 percent and 0.55 percent — similar to July’s statistics.
Year-over-year, Las Vegas-Henderson-Paradise, Nevada continued to see the largest increase of 8.38 percent. Stockton-Lodi, California came in second once again with a year-over-year increase of 7.47 percent. California had five markets in the top ten annual gaining markets, with the western region as a whole dominating the top increasing markets on an annual basis with eight markets seeing index point increases. Miami-Fort Lauderdale-West Palm Beach, Florida and New Orleans-Metairie, Louisiana were the only two markets in the top ten annual gaining markets not in the West, experiencing increases of 7.37 percent and 7.08 percent.
The Midwest prevailed over the top performing markets, gaining 0.55 percent over a three-month average. Analyzing the other three regions, Springfield, Massachusetts led the Northeast with a 0.40 percent increase, Stockton-Lodi, California led the West with a 0.47 percent increase, and Deltona-Daytona Beach-Ormond Beach, Florida led the South with a 0.39 percent increase over a three-month average. All lowest performing markets saw decreases in their three-month averages, with Toledo, Ohio seeing the largest decrease of 0.46 percent. Albuquerque, New Mexico saw a 0.27 percent decrease, Washington-Arlington-Alexandria, District of Columbia-Virginia-Maryland-West Virginia had a 0.22 percent decrease, and Albany-Schenectady-Troy, New York reported the smallest decrease of 0.10 percent.
The number of midsize markets posting percentage gains over a three-month average was 141 — 25 fewer than last month. Year-over-year, however, 199 midsize markets saw positive gains in market value, with the exception of Wheeling, West Virginia-Ohio which continues to decline yearly at 5.58 percent. Annual changes once again were dominated by the West with five markets in California and one in Oregon. Rochester, Minnesota was the top market annually and over a 3-month average with an increase of 14.64 percent and 3.39 percent. All of the top 10 markets experienced a three-month average increase of at least 0.57 percent and at least 6.71 percent gains annually.
“August saw a normal slowing of the market, but prices are holding their own with no real year-over-year declines. This indicates the odds are very good for a second strong year in terms of price increases that stick and restore home equity,” said David Mele, president of Homes.com.
Additional highlights from the August Homes.com Local Market Index reports included:
- Louisville/Jefferson County, Kentucky-Indiana reported the largest three-month average increase with a 0.55 percent index point increase.
- Toledo, Ohio saw the largest three-month average decrease at 0.46 percent.
- The Las Vegas-Henderson-Paradise, Nevada and Stockton-Lodi, California metro areas posted annual index point increases of 8.38 percent and 7.47 percent, respectively.
- Of the midsize Midsized markets, Rochester, Minnesota had the largest 3-month average increase and an annual increase of 3.39 percent and 14.64 percent, respectively.
Additional highlights from the Homes.com Rebound Report:
- Of the Top 100 markets, 39 markets have achieved a rebound of 100 percent or more.
- Four additional markets have rebounded between 97 percent and 100 percent: Provo-Orem, Utah; Nashville-Davidson-Murfreesboro-Franklin, Tennessee; Scranton-Wilkes Barre-Hazelton, Pennsylvania; and Jackson, Mississippi.
- Columbus, Georgia-Alabama continues to inch toward recovery with a rebound percentage of 1+/- 100 percent.
- Combining our top Top 100 and midsize marketsMidsized Markets, a total of 108 markets, or 36 percent, have achieved full pricing recovery.
Download all Homes.com Local Market Reports, supporting documents and rebound percentages for August 2014.
Download the Homes.com Local Market Report tables and graphs.
To receive a comprehensive data file, including index values in every zip code within a local market, contact Local Market Reports@Homes.com.
As one of the nation’s top online real estate destinations, Homes.com inspires consumers to dream big. From affordable houses to luxurious estates, condos, apartment rentals and more, Homes.com features more than 3 million property listings and exclusive distribution of over 20,000 apartment listings from ForRent.com in a user-friendly format, making finding your next home easy. Visitors to the Homes.com blog will find a collection of rich information and posts on DIY projects, painting, organization tips and more, providing the ultimate resource for everything home related. From finding your first apartment to buying your first home, upgrading, downsizing and everything in between, Homes.com is an inspiring and engaging partner in every phase of the home buying or renting process.