Local Market Report

40 Percent of Total U.S. Markets Have Fully Recovered

Homes.com’s Local Market Reports for January reveal 42 out of the top 100 markets measured continued to show a complete price recovery – the same number reported in December’s data. However, Youngstown-Warren-Boardman, OH-PA & Columbus, OH are two markets close to rebounding at 99.54% & 99.31%, respectively. Additionally, the Midsized Markets Report for smaller markets (population rank from 101 to 300) highlights that 78 markets have rebounded more than 100%, which is three markets higher than reported in December. A rebound of 100% or more means pricing for the market has surpassed its prior peak and reached full recovery. Decatur, AL, Macon, GA & Huntsville, AL are the new midsize markets to rebound and have collect rebound percentages of 100.46%, 100.29% and 100.17%. This brings the total U.S. markets achieving full recovery to 120 (40%).

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Of the top 100 markets, all markets increased their three-month average index point change in December, up six markets from December. Although all markets increased over a three-month average, the Northeast experienced the smallest increases. In January, the monthly percentage gains ranged from a low of 0.04% to a high of 1.01% with San Francisco-Oakland-Hayward, CA having the highest gain of 1.01% followed by Jackson, MS with a 0.99% gain. In January, the average annual percentage for the top 10 markets was around 6%; no market has seen anything higher. When we compare the Top 100 Markets, the average year-over-year change in January 2015 was 4.28% versus the 8.33% year-over-year change seen in January of 2014. When we review the average year-over-year change on a monthly basis since January 2014, we see that November of 2014 was the lowest at 3.77% with consecutive increases in December 2014 and January 2015. The year-over-year upward trends in annual price increases appear to be supporting the stabilization of pricing to a more normalized and sustainable level.

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In January, the number of midsize markets posting three-month average gains was 199, which is up four markets from December’s report. Bangor, ME was the only market that decreased over a three-month average with a meager 0.07% drop in price. Of the midsize markets, Rapid City, SD, again, took the top spot on an annual basis at 9.4%, while Kennewick-Richland, WA topped the three-month average mark at 1.38%. All markets in the top 10 three-month average list are from the South, West and Midwest regions. Annually, the West dominates with seven markets from that region. The average annual price appreciation for all mid-tier markets for January 2015 was 4.58%, down 3.31 base points from the average annual appreciation in January 2014, which was 7.89%.

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Could now be the time to buy or sell your home? Get more information about home value trends in your area in the Homes.com Local Market reports or check home values for your local area.

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