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Home Prices Rebound, but Still Down from Peak

Back in the 3rd quarter of 2005, the national median home price peaked at $227,633. Nine years later, the national median was $216,367 in the 3rd quarter of 2014, a decline of 4.9%. While the national median sale price remains below the boom-period peak, a majority of local markets have outpaced the national average over this period.

As depicted above, markets in North Dakota, largely due to a boom in oil production surged with the median price in Bismarck up 87.2% over this period. Markets in Texas have done well and six registered in the top 10. Metro areas in the Midwest, the Mid South, and the Northwest gained over this period. In total, 87 of the metro areas tracked saw an increase of the median home price in the nine years since the national market peak.

At the other end of the spectrum were markets concentrated in the boom and bust states like Southern California, Arizona, Nevada, and Florida. Markets in New England have sputtered in their recovery, partially due to the judicial process for handing foreclosures used in these states. The clearing process for foreclosures takes longer and the overhang of distressed properties weighs on the median price, though it may not be representative of submarkets in these areas.

Curious how your market has performed? To find out more about your market or others, see the Local Market Reports for the 3rd quarter.

Ken Fears, Director, Regional Economics and Housing Finance

Ken Fears is the Manager of Regional Economics and Housing Finance Policy. He focuses on regional and local market trends found in the Local Market Reports and the Market Watch Reports . He also writes on developments in the mortgage industry and foreclosures.

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Comments
  1. Josh Eyman

    Ken,

    I am curious to see what you think might happen to the market in North Dakota for housing in the next year or two. I realize that with high oil prices in the past 5 years the market for oil expansion in North Dakota has brought the housing sector up in that area, but oil prices are looking to possibly stay and hover around the $65 range or even below that. This is going to run some of the oil producers that are high in cost out of business. What do you think this will do to the housing trend in North Dakota?