Photo (cc) by maine-homeseller
The latest statistics indicate that home values are still rising nationwide, but the housing market recovery is proving to be a mix of good and bad news, according to Zillow.
The real estate website’s latest monthly market report shows that homes appreciated 3.3 percent nationally between August 2014 and August 2015:
The national growth rate has leveled off over the past five months, suggesting the housing recovery is ending and the market is returning to normal.
But more than 1 in 4 homes — about 28 percent — lost value over the past year, according to Zillow’s data. And in some markets, the percentage of homes recording dips in value exceeds 40 percent.
Svenja Gudell, Zillow’s chief economist, explains in a news release:
“We’re not going in reverse, but we are hitting the brakes a bit in some markets. It’s easy to say the recession is over when a third of the biggest markets are more expensive now than ever before, but we’re still seeing a number of homes losing value. The reality is there are still areas lagging behind in the recovery.”
These markets are concentrated on the East Coast and in the Midwest, with Baltimore faring worst on the Zillow Home Value Index. About 48 percent of homes in the Maryland city lost value over the past year.
In seven markets, the percentage of homes that lost value in the past year exceeds the national average of 27.9 percent, ranging from 32.6 percent (Cincinnati) to 48.1 percent (Baltimore):
- Washington, D.C.
- New York-northern New Jersey
In another seven housing markets, the percentage of homes that lost value in the past year is below the national average, but the share in each market is at least 20 percent:
- St. Louis
- Riverside, California
- Minneapolis-St. Paul
- Columbus, Ohio
- Charlotte, North Carolina
Have home values in your area benefited from the recovery, or are they still struggling to rebound from the housing market crash? Share your thoughts below or on Facebook.