By Suzanne De Vita | RISMedia
Housing has made headway in the decade since the onset of the recession, but, according to a new report by Trulia, there is still room for improvement in the recovery.
Approximately 34 percent of homes have values that exceed their peaks from before the recession, the report shows, despite many indicators, such as the S&P CoreLogic Case-Shiller Index, surpassing their own. Based on the lag in recovery, the report estimates 100 percent of homes will hit their pre-recession peaks by September 2025—or in another eight years.
“While these measures are indeed a sign that the housing market has improved since the Great Recession, they are aggregate measures,” writes Ralph McLaughlin, author of the report and chief economist at Trulia, of the indicators. “These aggregate measures use the average changes in sales prices of homes that sell, and thus don’t necessarily capture how the current value of individual homes compare to their pre-recession peaks.”
“The local Metro Phoenix Area housing market has improved immensely since housing values hit bottom in early 2011. Still, all value that was lost has not yet been regained in most submarket areas. With housing supply low now, the most Phoenix-area submarkets are likely to reach pre-bust housing peaks in the next 12 months.”
~ Jim Belfiore
