Recession’s In the Past for Many Metros’ Home Values

Posted by on Apr 23, 2014 in Blog | No Comments

SEATTLE—The National Association of Realtors may be reporting that growth in home prices—including for-sale apartments along with single-family houses—moderated last month, but Zillow is taking a long-term view. Within the next year, Seattle-based Zillow predicts, home values in more than 1,000 US communities will be higher than ever.

Although home values nationwide are still 13.5% below their 2007 peak, Zillow says the housing recession is “almost entirely in the rearview mirror” in 1,080 of the more than 8,700 cities and towns it covers. They’re expected to surpass their pre-recession peaks by the first quarter of 2015, if they haven’t done so already.

“This is a remarkable milestone coming only two and a half years after the end of the worst housing recession since the Great Depression, and is a testament to just how robust this housing recovery has been,” says Stan Humphries, Zillow’s chief economist. “So far, this steady appreciation has not created affordability issues in the majority of places. But there are a handful of markets where affordability is again a challenge, even with mortgage interest rates incredibly low . . .