Market Watch: Shawn Langlois
For many, a thriving jobs market and a historic bull market have helped make the popping of the housing bubble a decade ago a distant memory. But for others, the deep cuts caused by the real-estate collapse have yet to heal.
Cost-estimating website HowMuch.net created this graphic to illustrate where the recovery has taken hold — and where it hasn’t — across the country. As you can see, some parts of the U.S., as of 2017, never returned to 2007 levels.
“Housing prices declined almost everywhere across the country in 2008 and 2009,” explains HowMuch.net’s Raul Amoros in a blog post. “Our GIF therefore highlights the places that have seen prices surge in recent years as well as the states that are still recovering from the crash.”
In total, he points out, median house prices are now higher in 41 states plus Washington, D.C. than they were in 2007. But recovery in many areas around the U.S. has been tepid at best, with 22 states climbing by 20% or less over the course of those 10 years, though exceptions like North Dakota (+82.3%), Colorado (+49.2%) and Texas (+42.4%) have shown massive gains.
Laggards include the likes of Nevada, which was down 17.1% from prerecession levels. Rhode Island, Connecticut and New Jersey were all off double-digits, as well. Even California was in the red since the pre-collapse peak through 2017, but don’t tell that to anyone searching for a home in Silicon Valley.
Looking ahead, the current prospects for the housing market aren’t exactly rosy. Last week, the National Association of Realtors said pending home sales slid 2.6% in October to their lowest level since 2014, while the trade group now expects sales to drop by 3.1% total in 2018, followed by another decline next year.
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