SEATTLE, Sept. 13, 2018 /PRNewswire/ -- A decade after the
collapse of the housing market and start of the Great Recession,
home values have more than recovered in most of the nation's
largest markets, a Zillow® analysis shows. The markets with the
highest gains above the mid-2000s bubble are primarily in the West
and Southwest.
San Jose – the nation's most
expensive metro – leads the way with a current median home value of
$1.29 million, 74 percent higher than
the top of the bubble and more than double its post-crash low.
Denver follows with its median
value of $397,800 representing a 66
percent increase from the bubble's peak, though, unlike other parts
of the country, Denver never
experienced a rapid run-up of prices during the bubble years. In
all, home values in 21 of the nation's largest 35 markets are
higher than their pre-recession peaks.
But plenty of markets are still struggling to recover their lost
value. Homes in Las Vegas, which
have seen some of the steepest gains in the country over the past
year, remain 16 percent below their pre-bust median value.
Orlando and Chicago home values remain nearly 14 percent
below.
September 15 marks the 10th
anniversary of the collapse of Lehman Brothers, generally
considered the start of the Great Recessioni. By the end
of 2011 home values nationwide had dropped 17 percent, and close to
a third of homeowners were underwater in their mortgages. Millions
of people lost homes to foreclosure.
Today, median home values nationwide are about 8.7 percent above
what they were at the bubble's peak, and more than half the
nation's homes have regained their lost value. Less than 10 percent
of homeowners are underwater on their mortgages, though that number
jumps to the mid-teens in markets like Chicago and Baltimore where recovery has been stubbornly
slow.
"A decade after the financial crisis it's clear that, just as
the bust was felt very differently across the country, so has the
recovery. Looking back, the housing bust was a rare historical
moment when housing markets across the country moved in sync," said
Zillow Senior Economist Aaron
Terrazas. "While markets like San
Jose, San Francisco and
Denver have led the country out of
the bust and are doing very well – in many cases now dealing with
an affordability crisis – plenty of markets continue to bear
visible scars from the crash. Homes that still are worth less than
they were a decade ago mean more long-term homeowners remain
tethered to underwater mortgages, still struggling to regain that
lost value. In the markets that have seen the strongest recoveries,
a combination of strong job growth, tight supply and low interest
rates have pushed home values upward. But in places that continue
to struggle, the stimulus of low mortgage rates is quickly turning
to a headwind and the window for a full recovery is quickly
closing."
Following the crash, lending tightened significantly and
inventory shrank throughout the country. Nationwide, the median
home value is now about what it would have been had values
continued on the pre-bubble trend without a bubble or bust.
Homeownership rates nationally are beginning to climb but are still
down more than four percent from 2006.
Metropolitan
Area
|
Peak Median
Value
Pre-Crash
|
Lowest
Median Value
Post-Crash
|
Current
Median
Value
|
Change
From Pre-
Crash Peak
|
United
States
|
$200,500
|
$148,600
|
$218,000
|
8.7%
|
New York,
NY
|
$452,800
|
$335,100
|
$429,700
|
-5.1%
|
Los Angeles-Long
Beach-Anaheim, CA
|
$609,600
|
$380,800
|
$643,300
|
5.5%
|
Chicago,
IL
|
$254,100
|
$159,200
|
$219,800
|
-13.5%
|
Dallas-Fort Worth,
TX
|
$152,400
|
$137,800
|
$231,100
|
51.6%
|
Philadelphia,
PA
|
$237,300
|
$186,900
|
$228,400
|
-3.8%
|
Houston,
TX
|
$149,600
|
$133,400
|
$199,300
|
33.2%
|
Washington,
DC
|
$435,400
|
$308,900
|
$397,500
|
-8.7%
|
Miami-Fort
Lauderdale, FL
|
$311,600
|
$136,800
|
$275,700
|
-11.5%
|
Atlanta,
GA
|
$184,600
|
$116,400
|
$206,300
|
11.8%
|
Boston, MA
|
$386,600
|
$305,800
|
$456,400
|
18.1%
|
San Francisco,
CA
|
$705,100
|
$471,100
|
$954,100
|
35.3%
|
Detroit,
MI
|
$159,200
|
$73,900
|
$156,100
|
-1.9%
|
Riverside,
CA
|
$408,900
|
$186,000
|
$358,600
|
-12.3%
|
Phoenix,
AZ
|
$284,000
|
$128,600
|
$256,000
|
-9.9%
|
Seattle,
WA
|
$381,400
|
$254,700
|
$487,600
|
27.8%
|
Minneapolis-St Paul,
MN
|
$240,700
|
$166,300
|
$261,300
|
8.6%
|
San Diego,
CA
|
$540,000
|
$342,800
|
$584,100
|
8.2%
|
St. Louis,
MO
|
$155,900
|
$129,300
|
$161,800
|
3.8%
|
Tampa, FL
|
$223,500
|
$110,000
|
$205,900
|
-7.9%
|
Baltimore,
MD
|
$298,500
|
$216,900
|
$264,700
|
-11.3%
|
Denver, CO
|
$240,200
|
$211,600
|
$397,800
|
65.6%
|
Pittsburgh,
PA
|
$111,000
|
$106,700
|
$141,600
|
27.6%
|
Portland,
OR
|
$293,700
|
$215,500
|
$391,800
|
33.4%
|
Charlotte,
NC
|
$158,100
|
$130,600
|
$196,800
|
24.5%
|
Sacramento,
CA
|
$423,300
|
$209,800
|
$400,800
|
-5.3%
|
San Antonio,
TX
|
$143,400
|
$132,600
|
$185,900
|
29.6%
|
Orlando,
FL
|
$265,200
|
$122,200
|
$228,700
|
-13.8%
|
Cincinnati,
OH
|
$146,200
|
$125,300
|
$162,000
|
10.8%
|
Cleveland,
OH
|
$143,800
|
$110,600
|
$141,500
|
-1.6%
|
Kansas City,
MO
|
$155,500
|
$135,500
|
$182,600
|
17.4%
|
Las Vegas,
NV
|
$316,800
|
$119,900
|
$266,200
|
-16.0%
|
Columbus,
OH
|
$150,200
|
$126,100
|
$182,600
|
21.6%
|
Indianapolis,
IN
|
$132,000
|
$114,400
|
$154,100
|
16.7%
|
San Jose,
CA
|
$743,800
|
$546,200
|
$1,292,600
|
73.8%
|
Austin, TX
|
$199,400
|
$185,900
|
$298,000
|
49.4%
|
Zillow
Zillow is the leading real estate and rental marketplace
dedicated to empowering consumers with data, inspiration and
knowledge around the place they call home, and connecting them with
the best local professionals who can help. In addition, Zillow
operates an industry-leading economics and analytics bureau led by
Zillow's Chief Economist Dr. Svenja
Gudell. Dr. Gudell and her team of economists and data
analysts produce extensive housing data and research covering more
than 450 markets at Zillow Real Estate Research. Zillow also
sponsors the quarterly Zillow Home Price Expectations Survey, which
asks more than 100 leading economists, real estate experts and
investment and market strategists to predict the path of the Zillow
Home Value Index over the next five years. Launched in 2006, Zillow
is owned and operated by Zillow Group, Inc. (NASDAQ:Z and ZG), and
headquartered in Seattle.
Zillow is a registered trademark of Zillow, Inc.
i According to NBER, the official arbiter of U.S.
economic expansions and contractions, the recession started in
December 2007, nearly a full year
before the Lehman crash. For more information, visit
http://www.nber.org/cycles/recessions.html
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SOURCE Zillow