When the recession hit, home prices took a turn for the worse and fell dramatically. While some housing markets have since climbed their way back up to reach new peaks, others are still struggling to reach their previous highs.
A new home price index report from HSH.com that uses the Federal Housing Finance Agency's (FHFA) Home Price Index as a basis to determine which housing markets have fully recovered (or more) and which still lag behind the housing recovery.
According to HSH.com, the Denver, Colorado; Austin, Texas; and Houston, Texas markets have recovered most in terms of home values from recession times. The Denver metro area is 49.29 percent above its peak value of 277.21 at 413.86. Meanwhile, the Austin and Houston metros are 47.85 percent and 41.73 percent above their peak values, respectively. Wrapping up the top 10 most recovered metros is Dallas, Texas; San Francisco, California; Fort Worth, Texas; Pittsburgh, Pennsylvania; Nashville, Tennessee; Buffalo, New York; and San Antonio, Texas.
But while some markets have met or exceeded their previous peaks, there are other markets that are still fighting their way back.
"It is important to note that many markets, even the 10 that have recovered the least, have made significant price recoveries since hitting their bottom values," HSH.com said.
U.S. house prices rose 1.3 percent in the first quarter of 2016 and 5.7 percent year-over-year, according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI).
The report noted that this will mark the nineteenth consecutive quarterly price increase in the purchase-only, seasonally adjusted index and the fourth consecutive year in which prices grew more than 5 percent.
"While the overall appreciation rate was robust in the first quarter, home price appreciation was somewhat less widespread than in recent quarters," said FHFA Supervisory Economist Andrew Leventis. "Twelve states and the District of Columbia saw price declines in the quarter—the most areas to see price depreciation since the fourth quarter of 2013. Although most declines were modest, such declines are notable given the pervasive and extraordinary appreciation we have been observing for many years."
10 metro areas that have recovered the least
- Las Vegas-Henderson-Paradise, Nevada
- Stockton-Lodi, California
- Bakersfield, California
- Cape Coral-Fort Myers, Florida
- Fresno, California
- Tucson, Arizona
- Riverside-San Bernardino-Ontario, California
- Camden, New Jersey
- Orlando-Kissimmee-Sanford, Florida
- Elgin, Illinois