Areas in West, South still have long road to recovery, Northeast among top performing regions
NORFOLK, Virginia (August 27, 2014) – Homes.com®, leading online real estate destination, has released its June 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 from 101-300. Among the nation’s top 100 largest markets, all but one market has increased their three-month average index point change. Analyzing the top 300 U.S. markets, 299 markets report year-over-year gains for single-family properties. A total of 105 markets, or 35 percent, have achieved full pricing recovery across the nation.
Prices in the nation’s 100 largest markets appreciated at both ends of the spectrum. Of the bottom performing markets, New York-Newark-Jersey City, New York-New Jersey-Pennsylvania had the highest quarterly increase of 0.37 percent. The annual percentage increase for the top 10 markets in June is between eight percent and 10 percent, slightly lower than the nine percent to 12 percent seen in last month’s report. Of the six markets that have posted the highest gains over a three-month average in the Northeast, four are in Connecticut. Among the top 10 leaders, quarterly price increases range between 0.70 percent and one percent; slightly higher than last month.
New Haven-Milford, Connecticut saw the largest increase over a three month average of 0.99 percent. Las Vegas, Nevada metro area has leaped over San Diego, California to take the top spot in year-over-year index point change with an increase of 9.88 percent. Following closely behind, San Francisco, California posted an index point increase of 8.86 percent for the second month in a row. For the first time in 13 months, California no longer dominates the top 10 annual gaining markets, but the Western region still leads the top increasing markets on an annual basis with nine markets appearing on the list. Appearing on the top 10 list for the first month, Utah gains traction with three markets on the top 10 annual list. The only market on the annual gaining list from the South, Miami-Fort Lauderdale-West Palm Beach, Florida, has a yearly percentage increase of 8.12 percent.
Of the top 100 markets, the South continues to dominate recovery with 19 markets seeing rebound percentages greater than 100 percent. The West came in second place with seven markets over 100 percent rebound. This month, 37 of the top 100 markets measured continued to show complete price recovery, up one from last month’s report. As predicted, based on past analyses and trends, Knoxville, Tennessee, recovered in this month’s report with a rebound percentage of 100.05 percent. Additionally, 68 midsize markets are now more than a 100 percent rebound, down one from last month as Columbus, Georgia-Alabama slipped out of rebound at 99.96 percent recovered. Of the Top 10 markets to rebound, Baton Rouge, Louisiana has entered the list, replacing El Paso, Texas. Of the bottom 10 rebounding markets, Bakersfield, California has replaced Miami-Fort Lauderdale-West Palm Beach, Florida at the top of the list.
In the Midsized Market Report, every market on the top 10 list has seen a three-month average increase of at least 0.80 percent and at least eight percent gains annually. In June, the lone market that decreased annually is Wheeling, West Virginia-Ohio, which saw a 5.96 percent index point decrease. Over a three-month period, 186 markets increased, down five from last month. Annually, the majority of the gaining markets come from the West with the exception of the top market, Rapid City, South Dakota, which is part of the Midwest region, posting an index point change of 9.68 percent.
“The second quarter closed on a positive note for the majority of the housing market, with more than one-third of the markets achieving full price recovery by reaching or exceeding their peak price levels,” said Terry Slattery, president of Homes.com and For Rent Media Solutions. “We’ve witnessed widespread and steady recovery throughout the nation, with markets that are furthest from price recovery being largely former foreclosure markets that suffered severe price declines.” Slattery also notes that, of the 38 severe markets (those that have a peak-to-trough decline of 20 percent or more), only one has rebounded 100 percent, with the majority having rebounded an average of 80 percent. Showing that, while recovery is thriving, there’s still progress to be made.
Additional highlights from the Homes.com Local Market Index reports include:
New Haven-Milford, Connecticut reports the largest three-month average increase in this month’s report with a 0.99% index point increase.
Jackson, Mississippi saw the largest three-month average decrease at 0.14%.
The Las Vegas-Henderson-Paradise, Nevada and San Francisco-Oakland-Hayward, California metro areas posted annual index point increases of 9.88% and 8.86%, respectively.
The lone market on the yearly gaining list not from the West region is Miami-Fort Lauderdale-West Palm Beach, Florida, which saw an annual percentage increase of 8.12%.
Additional highlights from the Homes.com Rebound Report:
Knoxville, Tennessee reached recovery with a rebound percentage of 100.05%.
Columbus, Georgia-Alabama, the market rebounded in last month’s report, has fallen out of rebound at 99.96%.
Of the Top 100 markets, five of the top ten to rebound are located in the state of Texas.
Of the Top 100 markets, the bottom six markets that have not rebounded are located in the state of Florida.
Download all Homes.com Local Market Reports, supporting documents and rebound percentages for April 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 LocalMarketReports@Homes.com.
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