Almost a third of the top U.S. markets showed more than a 50% rebound in the price decline attributable to the Great Recession. What impact does this have for the recovery of the United States housing market?
The Homes.com Local Market Index Rebound Report provides a helpful way of understanding how the housing recovery process is unfolding across the country. This report measures how far each market has recovered from its peak-to-trough decline in index value but focuses on the period from 2005 forward to isolate the impacts of the Great Recession, the recently marked global economic decline that correlated with the bursting of the U.S. housing bubble. A value of 100% or higher in the Rebound Report indicates that the local market area has fully recovered any price decline as a result of the recession.
Recently, 29 of the 100 markets measured showed more than a 50% rebound. That’s almost a third of the top U.S. markets that have now more than halfway recovered the decline in home prices! Nine of these markets in fact showed a complete price recovery, with a majority in the state of Texas and exceeding 150%.
The top rebounding markets illustrate a relatively stable price change during the recession, reaching peaks around the 150 index point mark. The bottom markets experienced a more significant “housing bubble” and achieved peaks near or above the 200 index point level. Still, these bottom markets are gaining traction. For example, Lakeland-Winter Haven, FL has recovered 9.38% of the price decline yet is within the highest markets increasing month-to-month according to the Homes.com Local Market Index in March.
Above all, with 96 top markets gaining monthly and almost a third more than halfway recovered, the U.S. housing market is clearly on the road to recovery!
