As the year ended, 39 percent, or 117, of the nation’s largest 300 markets achieved full price recovery, up 30 percent from the end of 2013. Hundreds of other markets moved closer to full recovery; by December, the average rebound percentage of all 300 markets was 95.85 percent, which was slightly higher than 95.49 percent recorded in November.
Markets that lost the least value during the Great Recession have been the first to rebound. Of the markets with a peak-to-trough decline of less than 10 percent, 25 had an average rebound of 107 percent in December. Of the markets that lost 10 to 20 percent of value, the average rebound reached 99 percent of the prior peak price in December. In the markets that suffered the most severe price declines, the average rebound percentage was 81 percent.
In December, 42 of the top 100 markets measured continued to show a complete price recovery, increasing by two from November. Jackson, MS and NashvilleDavidson-Murfreesboro-Franklin, TN were the new markets rebounding at 100.15 percent and 100.16 percent, respectively. Additionally, 75 midsize markets saw a rebound above 100 percent, up by four markets from November’s report.
“Great progress was made in the housing market during 2014. It put the real estate sector within striking distance of a majority of the nation’s 300 largest markets reaching full price recovery. As markets reach new price peaks, they are restoring equity to millions of homeowners, making it possible for them to refinance or sell,” said David Mele, president of Homes.com.
South Maintains Momentum in Largest Markets
On a monthly basis, the top 10 markets with the highest 3-month average percent change were all located in the South, with a 0.89 percent lift. Three markets were located in South Carolina, two in North Carolina and two in Florida. The remaining top markets were located in the states of Georgia, Mississippi and Tennessee. The 3-month average percentage for the top 10 markets ranged from 0.67 percent to 0.89 percent, higher than the 0.42 percent to 0.61 percent seen in November’s data. The 3-month average percentage change for all top 100 markets continued to grow at 0.39 percent, which is higher than both the 0.22 percent recorded in November and 0.02 percent in October.
Of the bottom-performing regions, the Northeast was the worst at -0.20 percent while the Midwest fared the best of worst at 0.27 percent.
Largest Markets Summary:
- Miami-Fort Lauderdale-West Palm Beach, FL reached the top annual spot for the second time with an annual percent change of 6.69 percent.
- California had only one market in the top yearly gaining for December — a new low.
- Though the South was the dominant region in annual percentage gains, the West still remained relevant with four markets seeing annual percentage increases.
- Atlanta-Sandy Springs-Roswell, GA had the largest 3-month average increase of 0.89 percent, while Springfield, MA had the largest average 3-month decrease of 0.2 percent.
- In December, the annual percentage for the top 10 markets ranged from 5 percent to 7 percent, similar to the percentage range reported in November.
The South also dominated yearly with nine of the ten markets increasing. The remaining market was Rapid City, SD, which was the top annual market with an 8.79 percent index point increase. In December, the annual percent range was between 6 percent and 9 percent, which was similar to the prior month’s data.
In December’s Local Market Report, 195 midsize markets increased over a 3-month average, up 18 markets from November. Like the top 100 markets, the only midsize markets to decrease over a 3-month average were located in the Northeast. 199 markets increased annually while Wheeling, WV-OH continued to be the only market to decrease.
Midsize Market by Region and Division:
- The top-performing midsize market was Rocky Mount, NC in the Southern region’s South Atlantic division.
- The bottom-performing market was Bangor, ME in the New England division of the Northeast. It was also the only market to see a decrease of the bottom-performing markets.
- Daphne-Fairhope-Foley, AL was the market with the highest 3-month average change from the bottom-performing markets by region and division.
To receive a comprehensive data file, including index values in every zip code within a local market, contact Local Market Reports@Homes.com
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