A new report indicates more than one-third of the nation's top largest and midsize markets have achieved full price recovery, though further gains are expected to come slower as certain areas show signs of stalling.
Homes.com released its Local Market Index for March, recording year-over-year price gains in all 100 of the country's top markets and in each of the additional 200 midsize markets surveyed. For the 10th straight month, the West dominated the list in annual increases, with California alone accounting for six of the top 10 yearly improvements—including San Diego, where prices were up more than 16 percent year-on-year.
Compared to February, 79 of the top 100 largest markets posted gains, while an additional 162 smaller metros showed positive movement.
The most recent increases brought another handful of markets up to a full recovery, with a total of 102—35 of the largest and 67 midsize—rebounding completely. Another 57 percent of surveyed markets have come back at least halfway from their lowest recessionary price.
"As peak real estate season gets underway, hundreds of markets moved closer to rebound status with several reaching full price recovery," said Brock MacLean, EVP of Homes.com. "The top 300 U.S. markets have seen average annual gains of eight percent with the lowest gains still above three percent."
While the South and West are looking relatively healthier, indicators are less hopeful elsewhere in the country. According to Homes.com, price increases in the Midwest and Northeast have slowed in the last several months, with the latter actually posting decreases recently.
"As tight inventory boosts prices and recent graduates struggle with student debt, we're now seeing signs of slowing in specific regions of the country indicating a recovery may be a longer process in certain areas," MacLean explained.