Home prices in 40% of the 35 largest metro areas remain below their precrisis peak, a sign that values in much of the country are far from bubble territory, Zillow said.
“In the markets that have seen the strongest recoveries, a combination of strong job growth, tight supply and low interest rates have pushed home values upward,” Aaron Terrazas, Zillow’s senior economist, said in a press release. “But in places that continue to struggle, the stimulus of low mortgage rates is quickly turning to a headwind and the window for a full recovery is quickly closing.”
In Las Vegas, which had strong price growth in the past year, the median home price remains 16% below where it was at the precrisis peak. Prices remain 13.8% below the peak in Orlando and 13.5% in Chicago.
Nationwide, the median home price is 8.7% above the precrisis peak.
“Looking back, the housing bust was a rare historical moment when housing markets across the country moved in sync,” Terrazas said. “While markets like San Jose, San Francisco and Denver have led the country out of the bust and are doing very well, in many cases now dealing with an affordability crisis, plenty of markets continue to bear visible scars from the crash. Homes that still are worth less than they were a decade ago mean more long-term homeowners remain tethered to underwater mortgages, still struggling to regain that lost value.”
Prices in San Jose are 74% above their precrisis peak, and the median value of $1.29 million is the highest in the nation.
The median price in Denver is 65.6% above the peak, while Dallas had the third largest percentage gain at 51.6%.
New York’s median price is 5.1% below the peak, while Los Angeles is 5.5% above.