Ongoing improvements show economic stabilization, with 87 markets reaching full recovery and housing market price gains nearing 2005 records
NORFOLK, Va. (January 23, 2014) – Homes.com, a leading online real estate destination and a division of Dominion Enterprises, has released its November Local Market Index, a price performance summary of repeat sales of U.S. properties. Utilizing home pricing data, the Index shows year-over-year gains for single-family properties in all 300 top U.S. markets.
To provide insight into local sector housing trends across the country, Homes.com publishes the Local Market Index for the Top 100 markets and the companion Midsize Markets Report for defined areas ranked from 101-300. Month-over-month increases in index values were seen in 264 of the top 300 markets, up from 253 the previous month. This downtrend is likely due to both seasonal trends and the state of recovery for these markets.
As a complement to the Local Market Index, Homes.com publishes an exclusive Rebound Report, highlighting how the housing recovery process is unfolding across the country. It measures each market’s peak-to-trough decline in index value, which had been attributed to the bursting of the U.S. housing bubble.
While the number of top 100 markets achieving a full recovery increased by two from the previous month to 28, there is also noticeable improvement in the number of midsize markets seeing full recovery. This month, 59 of the top 200 midsize markets have fully recovered their loss in home prices due to the housing bubble burst. These advancements bring the total markets that have seen a full recovery to 87 (29%), up one from the previous month’s 86.
All of the 200 midsize local markets measured continued to show gains year-over-year for the single-family index. On a monthly basis, Utica-Rome, NY saw the largest gain, with a 2.50 index point jump. For the sixth consecutive month, Anchorage, Alaska and Hilo, Hawaii continue to be the top two performing markets on a year-over-year basis. Anchorage takes the top spot, increasing by nearly 20 percent, followed by Hilo with a more than 15 percent increase. The West continues to dominate the midsize markets, with 9 of the top 10 markets increasing on an annual basis and with year-over-year index point gains. On a monthly basis, the top 10 midsize markets are largely split between the southern and western regions with two markets from the Northeast near the top and bottom.
“This year will continue to bring good news, with numerous markets providing opportunities for consumers to take advantage of improvements as they consider buying and selling. Markets in the West and Heartland areas continue to lead the pack, but encouraging signs in the Southeast and Northeast prove the market is continuing the steady climb toward recovery,” said Brock MacLean, executive vice president of Homes.com. “With the gains we continue to see in local markets year-to-date, we should close out 2013 with year-over-year price gains nearing 2005 levels.”
The latest Homes.com Local Market Index reports the following:
- Year-over-year increases in all top 300 markets.
- Monthly increases in 92 of the top 100 markets and in 172 of the 200 midsized markets.
- Los Angeles-Long Beach-Santa Ana, CA is the top gaining market on a year-over-year basis, with a 28.56 index point or 17.61 percent increase.
- California markets [San Diego-Carlsbad-San Marcos, Calif., San Francisco-Oakland-Fremont, Calif.; Bakersfield-Delano, Calif.; Oxnard-Thousand Oaks-Ventura, CA] are the remaining 4 in the top 5. Year-over-year, they increased 26.66, 25,53, 21.86 and 21.69 index points, respectively.
- Of the top 10 yearly gaining markets in the top 100 markets, all are in the West.
Highlights from the Homes.com Rebound Report for the top 300 markets show:
- 87 have made a 100 percent rebound, indicating a complete recovery in these markets. This is an increase from 84 markets in the previous reporting period.
- Midsize markets lead the pack in areas that are recovering. Out of the 87 markets achieving more than 100 percent rebound this month, 59 are midsize.
- The three newest markets to achieve a full rebound are Columbia, SC, Ogden-Clearfield, UT, and Peoria, IL.
- Of the remaining non-recovered markets, 73 show more than a 50 percent rebound, down from 74 markets in the previous month.
- 89 percent (77) of the 87 fully rebounded markets reported month-over-month gains.
- 22 markets were not affected by the boom-bust scenario of the U.S. housing bubble. These markets did not experience the same peak-to-trough decline displayed by the remaining 278 markets. All of these markets are midsize markets, with half from the state of Texas and 73 percent from energy-producing areas. They include: Brownsville-Harlingen, Texas; Killeen-Temple-Fort Hood, Texas; Shreveport-Bossier City, La.; Anchorage, Alaska; Fayetteville, N.C.; Charleston, W.Va.; Lubbock, Texas; Cedar Rapids, Iowa; Amarillo, Texas; Waco, Texas; College Station-Bryan, Texas; Longview, Texas; Tyler, Texas; Fargo, N.D.-Minn.; Jacksonville, N.C.; Monroe, La.; Waterloo-Cedar Falls, Iowa; Abilene, Texas; Iowa City, Iowa; Wichita Falls, Texas; Sioux City, Iowa-Neb.-S.D.; and Midland, Texas.
Correction: Due to data reporting errors, the November Rebound Report previously reported Greensboro-High Point, NC as reaching a full recovery in November, however this market did not actually reach recovery until December. Additionally, Columbia, SC did reach full recovery in November. This release has been updated to reflect these changes.
The Homes.com Local Market Index (Top 100) for November 2013 can be downloaded here.
The Homes.com Local Market Index Midsize Markets Report can be downloaded here.
The Homes.com Rebound Report for November 2013 can be downloaded here.
The rebound percentages for the top 300 markets in November 2013 values can be viewed here.
Various tables and graphs included in the report can be downloaded here.
To receive a comprehensive data file including index values in every zip code within a local market, contact LocalMarketReports@Homes.com.
The Local Market Index is calculated from sales data on the same homes over time, allowing a side-by-side comparison of the same property. This more accurately tracks the monthly growth and decline in home prices over a longer period of time. Each sales pair observed is grouped with all other sales pairs found within the area to create a highly localized, neighborhood-level index.
The Homes.com Rebound Report tracks how far each market has recovered from its peak-to-trough decline in index value attributable to the Great Recession, a recently marked global economic decline that correlated with the bursting of the U.S. housing bubble. This report provides a useful way to understand how the housing recovery process is unfolding across the country.
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, rentals and more, Homes.com features close to three million property listings and a user-friendly format, making finding your next home or a licensed real estate agent easily accessible. Visitors to the Homes.com blog will find a collection of rich content and posts on DIY projects, painting, gardening and more, providing the ultimate resource for everything home related. From purchasing a first home, to upgrading, downsizing and everything in between, Homes.com is an inspiring and engaging partner in every phase of the home buying process.
Homes.com is a division of Dominion Enterprises, a leading marketing services and publishing company headquartered in Norfolk, Virginia. For more information, visit www.dominionenterprises.com.
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