Homes.com® recently released its April 2015 Local Market Index, a price performance summary of repeat sales in the top 100 markets, and the companion Midsize Markets Report for the next 200 largest markets. Among the nation’s top 300 markets, 137 markets (46 percent) have now achieved full pricing recovery in April, compared to 130 markets (43 percent) in March’s report.
All top 100 markets saw annual increases, and for the fourth month in a row, all markets increased their 3-month average index point change. The 3-month average increase range for the top markets was 0.85 percent to 1.19 percent.
Of the top 100 markets, the markets with minimal price declines have rebounded by an average of 108 percent. The average rebound percentage of the moderate price decline markets is at 101 percent of the prior peak price. Of the severe price decline markets, the average rebound percentage is 83 percent.
National Summary – Western Markets Post Largest 3-Month Average
Of the top performing regions, the West again had the largest 3-month average of 1.19 percent. The South had the smallest 3-month average increase at 0.24 percent. In April, all markets on the top performing and bottom performing list increased over a 3-month average for the fourth month in a row.
In April, 48 of the top 100 markets achieved a complete price recovery, up two markets from March. Among midsize markets, 89 are now more than 100 percent recovered, up five from March’s report.
Over a 3-month average, the top market again was San Francisco-Oakland-Hayward, Calif. which earned a 1.19 percent increase, followed by Denver-Aurora-Lakewood, Colo. with a 1.08 percent increase. The top ten large markets included six markets from the West, three from the Midwest and one from the Northeast.
“It’s exciting to watch the nation’s progress to full price recovery as it accelerates with strong year-over-year gains across the country,” says David Mele, president of Homes.com. “Nearly half of the nation’s 300 largest markets have reached their peak prices and the pace is accelerating. That’s great news for homeowners as they win back the equity that was lost during the housing depression.”
Southern Markets Lead Recovery while California Takes Top Spot in Largest Markets
The South continued to dominate the housing recovery with 23 markets, up by one from March. The Midwest came in second with ten markets, adding one new rebounded market, Milwaukee-Waukesha-West Allis, Wis.
In April, Denver-Aurora-Lakewood, Colo. again achieved the top spot with an annual percent change of 7.3 percent, while San Francisco-Oakland-Hayward, Calif. came in second at 6.97 percent. The West remained dominant in annual percentage gains with eight markets seeing yearly increases. From the South, Miami-Fort Lauderdale-West Palm Beach, Fla. and New Orleans-Metairie, La. rounded out the top 10 with annual percentage increases of 6.11 percent and 6.1 percent, respectively. Only Denver-Aurora-Lakewood, Colo. achieved an increase of over 7 percent annually, while eight markets have an annual percentage increase of at least 6 percent. Stockton-Lodi, Calif. was the only market to increase below 6 percent. Although the number of top markets from California has diminished over the last few months, California still leads in top markets with four markets on the top annual list.
Largest Markets Summary:
● Milwaukee-Waukesha-West Allis, Wis. and Birmingham-Hoover, Ala. are the two latest markets to reach a full rebound at 100.44 percent and 100.24 percent.
● All top 100 markets saw annual increases. Denver-Aurora-Lakewood, Colo. had the largest increase at 7.3 percent, while Bridgeport-Stamford-Norwalk, Conn. had the smallest annual percent increase at 1.41 percent.
● San Francisco-Oakland-Hayward, Calif. had the largest 3-month average increase at 1.19 percent, while McAllen-Edinburg-Mission, Texas had the smallest average 3-month increase at 0.24 percent.
Four More Midsize Markets Rebounded in April
A total of 89 midsize markets are now more than 100 percent recovered, up five from March’s report. Tupelo, Miss.; Niles-Benton Harbor, Mich.; Dothan, Ala.; Montgomery, Ala.; and Dalton, Ga. were the new midsize markets rebounding. Their rebound percentages were 100.45 percent, 100.42 percent, 100.27 percent, 100.11 percent and 100.08 percent, respectively.
Among the 200 midsize markets, the market with the best 3-month average was Grand Junction, Colo. which increased 1.28 percent. Nine of the top ten markets increased over 1 percent on a 3-month average, while Torrington, Conn. was the only market not to increase more than 1 percent. The top ten 3-month average markets consisted of markets in the Northeast (three), Midwest (two), West (three) and South (two). In April, the 3-month average percentage range was 0.97 percent to 1.28 percent, slightly lower than 1.15 percent to 1.32 percent in the prior month’s report.
On a yearly basis, the West claimed nine of the top ten markets that increased in April. Rapid City, S.D. is the top annual market among midsize markets with a 7.99 percent index point increase. Four markets had at least a 7 percent increase, while six markets had at least a 6 percent increase. Colorado represented the most top markets with three. In April, the annual percent range was between 6 percent and 8 percent, lower than March’s 6 percent to 9 percent.
In April’s Local Market Report, all midsize markets increased over a 3-month average, up two markets from March. Vineland-Bridgeton, N.J. and Pottsville, Pa. were the two markets that decreased last month but bounced back with 3-month average increases of 0.57 percent and 0.47 percent. Some 199 markets increased annually, while Wheeling, WV-OH continued to decrease annually at a rate of 6.05 percent.
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