Gap between strongest and weakest metros hits widest point
The housing market has gained back all $9 trillion in value it lost when the market collapsed, but its uneven recovery has left many housing markets falling behind as others plow ahead, according to Zillow.
"A decade after the financial crisis, the scars of the housing bust are still with us. The gap between the metros with the strongest and weakest housing market recoveries is as wide as it has ever been," Aaron Terrazas, Zillow's senior economist, said in a press release.
Over half of the nation's largest housing markets have regained all value lost during the crisis, with the average home costing $55,200 more than it was at the bottom of the recession.
"The California Bay Area's housing recovery stands out when compared to other markets that saw similar home value appreciation because it has more than regained all of its lost value. Strong, high-paying job markets and persistently limited inventory sent prices skyrocketing, leading to the Bay Area having the most valuable housing markets in the country," said Terrazas.
Unlike the Bay Area market, recovery in Las Vegas is still lagging. The City of Lights suffered a $190,000 loss in home prices, dropping values 62%. Home prices have only recovered $131,000 so far.
Because Denver's housing market didn't experience much of a boom during its bubble year, home prices in the city declined just over 9% during the housing crisis, which is less than half of what the average home lost in value across the nation.
When the housing bubble burst in 2007, the average home lost 23% in value. Home prices hit their lowest points in December 2012, with individual markets bottoming out between July 2011 and December 2012.