By David Fuller
Property prices in many of America’s largest cities are surpassing peaks from a decade ago, new figures show.
The August property market report released by real estate data firm Zillow, shows that 24 of the nation’s largest 35 markets have more than recovered the value lost when the housing bubble burst in late 2007.
Markets with the highest share of homes that have fully recovered in value include Denver, Dallas and Nashville, where values for almost all homes built before the recession have reached or surpassed their pre-recession peaks
However, while these figures may paint a picture of a steady recovery, not all homes are recovering their original, pre-crash value.
“The housing market as a whole is moving at a steady clip, with high demand and low inventory combining to maintain strong home value appreciation,” said Zillow chief economist Svenja Gudell. “Most new construction has been at the higher end of the market, so demand for the limited supply of entry level homes is pushing up their values, but these homes also lost more value when the bubble burst,” she explained.
“Many of these home owners are still waiting to see their homes come back to where they were about ten years ago. Even as headline numbers show an overall recovery, there are still thousands of Americans struggling to bounce back from the housing bust,” she added.
Indeed, in many markets, only a sliver of homes have recovered their values: Less than 1 percent of homes in Las Vegas have returned to their earlier peaks. Meanwhile, less than 10 percent of homes in Orlando, Riverside, Calif., Hartford, Conn., Phoenix and Miami have reached theirs.
The median home value in the United States is currently US$201,900. This is 6.9 percent higher than it was at the same point last year. Zillow predicts that values will rise a further 3.1 percent within the next year.
Seattle was the only major market where home values rose at a double-digit pace in the last 12 months, up 12.4 percent since August 2016 to a median home value of US$453,100.