43 percent of top 300 markets achieve full pricing recovery.
NORFOLK, Va. (May 27, 2015) – Homes.com®, leading online real estate destination, has released its March 2015 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 300 markets, 130 markets (43 percent) have now achieved full pricing recovery compared to 123 markets (41 percent) in February’s report.
All markets in the top performing list experienced increases greater than 1 percent, and all top 100 markets saw annual increases. For the third month in a row, all markets on the top-performing and bottom-performing lists increased for the 3-month average.
Of the 100 largest markets, those with minimal price declines rebounded by an average of 107 percent. For markets that experienced moderate price declines, the average rebound percentage was at 100 percent of the prior peak price. In severe price decline markets, the average rebound percentage was approximately 83 percent.
National Summary – Western Markets Rebounding Faster
The West had the largest 3-month average of 1.33 percent, while the Northeast had the smallest 3-month average increase of 0.06 percent. Denver-Aurora-Lakewood, CO achieved the top annual spot with an annual percent increase of 7.35 percent, while New Orleans-Metairie, LA came in second at 7.11 percent. The West remained dominant in annual percentage gains, with eight markets seeing yearly increases.
“Rising prices are accelerating the nation’s return to peak prices in most markets, especially in the West where we see spring price increases leading the nation. At the faster rebound rate, the U.S. will pass the halfway point by the end of summer when more than 50 percent of the top 300 markets will reach full price recovery,” said David Mele, president of Homes.com.
Southern Markets Lead Recovery in Largest Markets
While the West rebounded faster, the South dominated for price recovery in the nation’s largest 100 markets with 22 of 39 markets fully recovered. The West ranked second with eight markets out of 24 where prices now exceed peaks. Nine out of 20 have fully recovered in the Midwest, while only seven out of 17 rebounded in the Northeast.
Largest Markets Summary:
- Three new markets reached recovery in March: Columbus, OH (100.46 percent), Cincinnati, OH-KY-IN (100.35 percent), and Scranton-Wilkes Barre-Hazelton, PA (100.11 percent).
- The top performing month-to-month market was San Francisco-Oakland-Hayward, CA, with a 3-month average appreciation of 1.33 percent. Worst performing was Syracuse, NY with a 3-month average appreciation of only 0.06 percent.
- Las Vegas-Henderson-Paradise, NV had the lowest rebound rate among the nation’s 100 largest markets at 67.15 percent of its peak price.
- The second lowest large market was Stockton-Lodi, CA with a rebound rate of 69.13 percent.
- The South again led the nation with the most markets achieving 100 percent or more price recovery. The South had 22 recovered markets, followed by the West with eight, the Midwest with nine and the Northeast with seven.
Four More Midsize Markets Rebounded in March
The newest midsize markets to rebound were Charlottesville, VA (100.16 percent), Muskegon, MI (100.10 percent), Springfield, MO (100.09 percent), and Olympia-Tumwater, WA (100.04 percent).
The market with the best 3-month average was Grand Junction, CO, increasing 1.32 percent. All top midsize markets with a 3-month average increase over 1 percent were located in the West, with the exception of Saginaw, MI in the Midwest. Of the top midsize markets, two each were in California, Colorado, Washington and Arizona, while one market was in Michigan and one in Idaho. In March, the 3-month average percentage range was 1.15 percent to 1.32 percent, slightly lower than 1.21 percent to 1.49 percent in the February report.
On a yearly basis, the West claimed six out of ten midsize markets seeing increases. The remaining four markets came from the Midwest. Rapid City, SD remained the top annual market with a 9.11 percent index point increase, and was the only market to see an increase over 9 percent. Three markets had at least a 7 percent increase, while six markets had at least a 6 percent increase. In March, the annual percent range was between 6 percent and 9 percent, similar to February’s data.
In March’s Local Market Report, 198 midsize markets increased over a 3-month average, down two markets from the prior month. Vineland-Bridgeton, NJ and Pottsville, PA were the two markets that decreased their 3-month average. Some 199 markets increased annually while Wheeling, WV-OH continued to decrease annually at a rate of 6.86 percent.
Midsize Markets by Region and Division:
- The top performing region on a 3-month average was the West, followed by the Midwest.
- The Northeast was the only region to see a decrease in 3-month average.
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