U.S. rebound percentage rose from 30% to 39% in 2014
NORFOLK, Va. (February 24, 2015) – Homes.com®, leading online real estate destination, has released its December 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,
94 markets increased their 3-month average index point change in December, up one market from November. In December, Homes.com’s Local Market Index found that 195 midsize markets increased over a 3-month average, an 18-market increase from the prior month. Like the top 100 markets, the only midsize markets to decrease over a 3-month average are located in the Northeast. Some 199 markets increased annually.
Fully Recovered Markets Rose from 30 percent to 39 percent in 2014
As the year ended, 39 percent, or 117, of the nation’s largest 300 markets achieved full price recovery, up 30 percent from the end of 2013. In December, the average rebound percentage of all 300 markets that lost value during the Great Recession was 95.85 percent, which was slightly higher than 95.49 percent recorded in November.
Markets that lost the least value during the Great Recession have been the first to rebound. Of the markets with a peak-to-trough decline of less than 10 percent, 25 had an average rebound of 107 percent in December. Of the markets that lost 10 to 20 percent of value, the average rebound reached 99 percent of the prior peak price in December. In the markets that suffered the most severe price declines, the average rebound percentage was 81 percent.
In December, 42 of the top 100 markets measured continued to show a complete price recovery, increasing by two from the November report. Jackson, MS and Nashville-Davidson-Murfreesboro-Franklin, TN were the new markets rebounding at 100.15 percent and 100.16 percent, respectively. Additionally, 75 midsize markets saw a rebound above 100 percent, up by four markets from November’s report.
“Great progress was made in the housing market during 2014. It put the real estate sector within striking distance of a majority of the nation’s 300 largest markets reaching full price recovery. As markets reach new price peaks, they are restoring equity to millions of homeowners, making it possible for them to refinance or sell,” said David Mele, president of Homes.com.
South Maintains Momentum in Largest Markets
On a monthly basis, the top 10 markets with the highest 3-month average percent change were all located in the South, with a 0.89 percent lift. Three markets were located in South Carolina, two in North Carolina and two in Florida. The remaining top markets were located in the states of Georgia, Mississippi and Tennessee. The 3-month average percentage for the top 10 markets ranged from 0.67 percent to 0.89 percent, higher than the 0.42 percent to 0.61 percent seen in November’s data. The 3-month average percentage change for all top 100 markets continued to grow at 0.39 percent, which is higher than both the 0.22 percent recorded in November and 0.02 percent in October.
Of the bottom-performing regions, the Northeast was the worst at -0.20 percent while the Midwest fared the best of worst at 0.27 percent.
Largest Markets Summary:
- Miami-Fort Lauderdale-West Palm Beach, FL reached the top annual spot for the second time with an annual percent change of 6.69 percent.
- California had only one market in the top yearly gaining for December — a new low.
- Though the South was the dominant region in annual percentage gains, the West still remained relevant with four markets seeing annual percentage increases.
- Atlanta-Sandy Springs-Roswell, GA had the largest 3-month average increase of 0.89 percent, while Springfield, MA had the largest average 3-month decrease of 0.2 percent.
- In December, the annual percentage for the top 10 markets ranged from 5 percent to 7 percent, similar to the percentage range reported in November.
In December, Prices Increased in Most Midsize Markets
The market with the best 3-month average was Rocky Mount, NC, which increased 1.02 percent. It was the only market to see greater than a 1 percent increase over a 3-month average. Much like the top 100 markets, all markets in the top 10 3-month average were located in the South. Three markets were in Virginia, while two were located in North Carolina. In December, the 3-month average percentage range was 0.89 percent to 1.02 percent, significantly lower than 0.67 percent to 1.82 percent in the previous December.
The South also dominated yearly with nine of the ten markets increasing. The remaining market was Rapid City, SD, which was the top annual market with an 8.79 percent index point increase. In December, the annual percent range was between 6 percent and 9 percent, which was similar to the prior month’s data.
In December’s Local Market Report, 195 midsize markets increased over a 3-month average, up 18 markets from November. Like the top 100 markets, the only midsize markets to decrease over a 3-month average were located in the Northeast. 199 markets increased annually while Wheeling, WV-OH continued to be the only market to decrease.
Midsize Market by Region and Division:
- The top-performing midsize market was Rocky Mount, NC in the Southern region’s South Atlantic division.
- The bottom-performing market was Bangor, ME in the New England division of the Northeast. It was also the only market to see a decrease of the bottom-performing markets.
- Daphne-Fairhope-Foley, AL was the market with the highest 3-month average change from the bottom-performing markets by region and division.
Homes.com offers today’s demanding homebuyers, renters, and those somewhere in between a simply smarter home search with a more personalized and conversational way to find their next home. Since its launch, Homes.com has offered real estate professionals brand and property advertising, search engine marketing, and instant response lead generation to help them succeed online. For more information, visit Homes.com.