It’s been more than a decade since the housing market collapsed, causing home prices to drastically drop – by 35% nationwide – leaving some homeowners owing more on their homes than they were worth.
Home prices have been going up since 2011 and are still going higher, but you may be wondering whether the market has fully bounced back from the recession.
A New Study Shows Market Has Almost Fully Recovered
A new study by CoreLogic indicates that the housing market has almost completely recovered from the recession. The average home price for the nation is now slightly higher — by just 1% — than it was in 2006 when many homes were at their peak prices before their values collapsed in 2007.
Home prices have risen by 51% since March of 2011 when many reached their lowest “trough” level. The decline hit some states faster than others and some saw more drastic price drops than others, so it makes sense that the recovery has also been slower in some areas than others.
Recovery Not the Same in All States
While the nation’s average home price has stabilized, not all states are back to their pre-recession price levels, according to CoreLogic. And some states weren’t as drastically affected by the national housing downturn in the first place, with 10 states showing peak-to-trough declines of less than 10%.
Maryland was among the states with the largest peak-to-trough drops during the recession, with home prices in the state dropping by 31%. And even though home prices appreciated by 15% from 2011 to 2017, and prices are up by 21% since they reached their lowest point, they have not fully recovered. They are still down by 17% since reaching their pre-crisis peak in November of 2006.
The Washington D.C. housing market, on the other hand, is actually bringing in better prices now than it was during its pre-crisis peak in May of 2006. But then again, it only experienced a 10% price drop during the recession. According to CoreLogic, D.C. homes appreciated by 24% between 2011 and 2017 and are now 24% higher than they were at their peak before the recession.
Lakeside Title Streamlines Real Estate Transactions
Lakeside Title Company provides title insurance and numerous title-related services in Maryland, Washington, D.C., Northern Virginia, and Southern Pennsylvania. Our processes streamline residential and commercial real estate transactions for lenders, realtors, buyers and sellers. To learn more, give us a call at 410-992-1070. We look forward to the chance to serve you!