Photo: Robert Clark
The US housing market has regained the $9 trillion it lost during the Great Recession, with home values higher than ever in half of the country’s largest metros.
However, many metros remain well below pre-crisis peak values while others have surged toward recovery, according to a report released yesterday by the listing site Zillow.
The typical American home lost 23 percent of its value when the housing bubble burst in 2007. Nationally, home values fell to their lowest level in December 2012, while individual markets bottomed out between July 2011 and December 2012.
Nationally, the typical home is now valued almost 5 percent higher than pre-crisis peaks and 37 percent above the crisis low. Overall, housing markets on the West Coast have seen the strongest gains in home values, with some markets regaining far more than the value lost during the crisis.
But some markets in the “sand states” — Arizona, California, Florida, Texas and Nevada — that recorded the biggest drops in home values during the crisis have yet to fully recover, says Zillow.
Homes in both the Las Vegas and San Jose markets devalued by about $190,000 during the crisis. But for Las Vegas, that loss represented a 62 percent decrease in the home’s value, and the typical home in the city has only regained about $130,000 so far.
While in San Jose, the loss represented only about 25 percent decline in value, and homes have since gained over $615,000 in value following the crisis — more than triple the value that was lost.
“The gap between the metros with the strongest and weakest housing market recoveries is as wide as it has ever been,” Zillow Senior Economist Aaron Terrazas says in the digital release.
Homes in five West Coast markets have regained the most value since the crisis: San Jose, CA ($615,000), San Francisco, CA ($436,000), Los Angeles, CA ($248,000), San Diego, CA ($218,000) and Seattle, WA ($206,000).
“Markets in the West, including the Bay Area, Seattle, Portland, Denver and Dallas have been among the fastest-growing markets nationwide for the past several years, adding an abundance of high-paying jobs and attracting thousands of new residents. This growth has been accompanied by big gains in home values as supply has not kept up with demand — these things combined have driven faster recovery,” Terrazas tells BuzzBuzzNews.
The Bay Area’s housing recovery is also distinctive because it has more than regained all of its lost value when compared to other markets that saw similar home value appreciation.
“Strong, high-paying job markets and persistently limited inventory sent prices skyrocketing, leading to the Bay Area having the most valuable housing markets in the country,” Terrazas says.
Still, many markets remain below pre-crisis peaks, including New York City (3.5 percent), Chicago, IL (13.4 percent), Miami, FL (14.1 percent) and Baltimore, MD (9.7 percent).
Click here to read the entire release.