Florida markets continue to strengthen with two seeing top annual gains
NORFOLK, Va. (January 27, 2015) – Homes.com®, leading online real estate destination, has released its November 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, 93 markets increased their three-month average index point change in November, up 35 markets from October. The Homes.com Local Market Index found that 177 midsize markets increased over a three-month average, representing 44 markets more than the prior month. 199 markets increased annually while only one market decreased.
Price Rebounds Resume in Fourth Quarter
After declining in October, the number of fully recovered markets among the top 100 largest markets increased by one, with 40 markets experiencing a complete price recovery. Additionally, 71 midsize markets are now more than 100% recovered, bringing the total number of recovered markets to 111, or 37% of the top 300 markets.
In November, the average rebound percentage of all 300 markets affected by the Great Recession was 95.49%, which was slightly higher than 95.29% recorded in October.
Markets that lost the least value during the Great Recession are rebounding the fastest. The markets with a peak-to-trough decline of less than 10% had an average rebound percentage of 106% in November. Of the markets that lost 10% to 20% of value, the average rebound percentage reached 98% of the prior peak price in November. Of the markets that experienced the most severe price decline, the average rebound percentage was 81%.
“Lower interest rates, healthy inventories and moderating prices contributed to an improved rebound picture in November. As more and more markets reach and maintain rebound status, equity continues to be restored to thousands of homeowners and could be an indicator of a much stronger market in 2015,” said David Mele, president of Homes.com.
South Maintains Momentum in Largest Markets
The South continued to dominate recovery with 20 markets seeing rebound percentages greater than 100%. The West came in second place with eight markets over a 100% rebound.
In November, the top ten markets with the highest three-month average percent change were spread between the South, West and Midwest – four markets in the South and three each in the West and Midwest. The seven markets that did not see increases over a three-month average are located in the Northeast region, specifically in the New England area. The three-month average percentage for the top ten markets ranged from 0.42% to 0.61%, higher than the 0.23% to 0.40% seen in October’s data. The three-month average percentage change for all top 100 markets was 0.22%, which is significantly higher than the 0.02% recorded last month.
Largest Markets Summary:
- Miami-Fort Lauderdale-West Palm Beach, FL has reached the number one spot for the first time with an annual percent change of 6.50%.
- Tampa-St. Petersburg-Clearwater, FL has entered the top ten annual list for the first time with a yearly increase of 5.23%.
- California continued to cool down with only two top yearly gaining markets in November, the second month in a row.
- The West still dominates the top increasing markets on an annual basis. However, the South is rising, with four markets seeing annual percentage increases.
- Boise City, ID had the largest three-month average increase of 0.61%, while New Haven-Milford, CT had the largest average three-month decrease of 0.27%.
Midwest Markets Dominate Midsize Rankings
Among the 200 midsize and smaller markets tracked by Homes.com, the market with the best three-month average and annual percentage was Rapid City, SD, which increased 1.82% and 8.79%, respectively. It is the only market to see greater than a 1% increase in a three-month average and an 8% increase annually.
Seven of the ten top three-month average gaining markets were from the Midwest, while two were from the West and one from the South. Of the seven Midwestern markets, the top two were from South Dakota. In November, the three-month average percentage range was 0.67% to 1.82%, significantly higher than 0.46% to 0.48% in October’s report.
Annually, the Midwest also dominated with six markets in the top ten. The remaining markets were from the South (3) and West (1). The annual percent range in October was between 6% and 8%. In November, the annual percentage was slightly higher at 6% to 8.79%.
“As 2014 neared its close, both smaller and larger markets were rebounding at virtually the same pace. More than a third of small as well as large markets have achieved full price recovery. Price recovery is reaching Main Street America, breathing life into local real estate markets,” Mele said.
Midsize Market by Region and Division:
- The top performing midsize market was Rapid City, SD in the Midwest.
- Of the top performing markets, Claremont-Lebanon, NH-VT in the Northeast was the only market that saw a decline.
- Six of the bottom performing markets saw drops in their monthly change, with Rochester, MN seeing the largest monthly drop of -2.90%.
Download all Homes.com Local Market Reports, supporting documents and rebound percentages for November 2014. Download the Homes.com Local Market Report tables and graphs. Learn more about the methodology used to create Homes.com’s Local Market Index, the Homes.com Rebound Report and other frequently asked questions.
To receive a comprehensive data file, including index values in every zip code within a local market, contact Local Market Reports@Homes.com.
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