Home prices are rising but some metros still have a long way to go to reach their previous high
Despite a general upward trend for US home prices, there are some metros where their most recent peak was almost 30 years ago.
A new analysis shows that, as of the fourth quarter of last year, 21 of the top 100 US metros have yet to recover to their 1991 peak – and some may not do so within the current economic cycle.
The Home Price Recovery Index from HSH reveals that value gaps continue to narrow nationally but using FHFA data, the analysis shows that 13 metros had lower values in Q4 2019 than in the previous quarter.
Elgin IL, Charleston-North Charleston SC and El Paso, TX, had values in the fourth quarter of 2019 lower than a year earlier.
Five metros had lower values in Q4 2019 than in 1991 despite at least doubling their ‘bust era’ values.
Lower and still falling mortgage rates are re-igniting home price gains with 64 markets showing values that are more than 10% above previous peak, up from 61 in the previous quarter.
Only eight metros have double-digit value gaps to fill, led by Bakersfield, CA (21%), Bridgeport-Stamford-Norwalk, CT (16%), and Cape Coral-Fort Myers, FL (15%).
